Bankruptcy & Foreclosure
Sorry....didn't realize my caps lock was on.
Here's the question again.
How do bankruptcies affect the possibility of doing a short sale?
Sorry....didn't realize my caps lock was on.
Here's the question again.
How do bankruptcies affect the possibility of doing a short sale?
most mortgagees won't consider a short if the homeowner is in bankruptcy... why?
because negotiating a short sale payoff is considered a collection activity
collection activities are prohibited by bankruptcy
some mortgagees play fast and loose with the federal law.... or they are simply ignorant
[addsig]
Would this still be the case if the property in question was not included in the bankruptcy?
so it's pre-foreclosure?
Have at it. At that point is the home owner going to say go away until this BKK thing is done?
" Would this still be the case if the property in question was not included in the bankruptcy?"
Most folks that consider bankruptcy do so to save their home from foreclosure...
they are less concerned with credit card debt or utility bills.
I can't speak to the individual policies for all mortgage loan servicers... but you raise an interesting question. Truth be told, in 25+ years I can't recall encountering a preforeclosure/bankruptcy situation that didn't include the house...
[addsig]
If the house was specifically not included or was taken out with permission then you should be able to proceed.
If the house was in and then taken out see if you can find out why so you can better understand the motivation.
John
[addsig]
I'm in the process of a short sale on a property that is in bankruptcy. The motgage company (Wells Fargo) is requesting a "written consent" from the homeowner's attorney. In addition they are asking for a Bankruptcy court order consenting to selling the property or release of the case. They also want a listing agreement. Does anyone have a sample petition to the bankruptcy court for consent to sell property? Anyone have any insight into dealing with this?