2 Questions On Short Sales
If the homeowner has filed bankrupt and it is still open, can you still do a short sale?
To find a "Cash" buyer, would you have a silent auction on the property where you contact all investors and set up a specific date for the auction OR just call and everyone and see who's interested?
The properties are preforeclosures and will have 40% equity in them after the short sale.
Any thoughts or comments welcome.
"If the homeowner has filed bankrupt and it is still open, can you still do a short sale?"
The bankruptcy controls any transaction that involves the assets of the Debtor. That includes the simple act of listing the property for sale with a broker, entering into a conventional sale agreement, and, especially, a short sale agreement.
The Homeowner will need permission from the bankruptcy trustee.
I have had 2 experiences in Florida...
1) If the existing loan is FHA, then the foreclosing lender will insist the BK be dismissed before they will ever discuss a SS.
2) If the existing loan is conventional and you have an acceptance of your offer, then the title company will simply ask for consent from the BK trustee.
God Bless You