Bankruptcy, PACER And Short Sale
Hello all,
I just finished searching PACER to find a potential client's discharge date, and had no such luck. The client is more than 2 years in arrears and filed bankruptcy twice, the first time they didn't file correctly. My question is, can we do a short sale even though they have filed chapter 13, also, when is the discharge date set, and is it listed on PACER? One last question, can't the bank have the stay lifted and go ahead with the foreclosure? Thanks, Tim
please help
Most mortgagees won't consider a short while the mortgagor is protected in bankruptcy. Any transaction must also be approved by the bankruptcy trustee. Without prior trustee approval, the transaction is voidable.
And yes, the mortgagee can seek the lifting of the automatic stay.[ Edited by TheShortSalePro on Date 01/10/2004 ]
Actually the trustee does not have to approve the sale or the lift stay motion or anything for that matter. The JUDGE or court has to approve. It is good to get the trustee in favor of the motion and not to object as it will go better in court but the court has the final answer.
Good LUCK and Thank You
Hope this helps some
Ted Jr
Tedjr states: "Actually the trustee does not have to approve the sale or the lift stay motion or anything for that matter."
It should be noted that there is a difference between a bankruptcy court appointed Bankruptcy Trustee (as referenced in my posted response to the original question), and a trustee who holds title to property for the benefit of others in jurisdictions that rely upon a trustee including non judicial foreclosure/Trust Deed states.
A court appointed Bankruptcy Trustee, usually an attorney, administers the debtor's case.
For a mortgagor who is protected under a bankruptcy plan, even the simple act of entering into a listing agreement with a real estate broker requires approval from the Bankruptcy Trustee.... as would entering into a contract for sale. Without that approval, those contracts are voidable by the bankruptcy court.
[ Edited by TheShortSalePro on Date 01/10/2004 ]
Trying to negociate with a seller that is in bankruptcy can be very tricky and if not done correctly, could be in violation of thier bankruptcy agreement.
For this one it wouldn't be a bad idea to have legal advice, unless the purchase price is paying the seller completely out of bankruptcy.
Thanks all, but who and when is the discharge date set? Tim
if it's a CH13, check the docket on PACER to see if their CH 13 plan was approved yet (payment plan). If it they haven't had a hearing yet to approve or dissapprove the plan then it should say on the docket calendar when the next hearing if any os scheduled.
Thanks!!
Pacer (usually) will not list the discharge date until the debt is actually discharged. In chapter 7, it really depends on the state and how backed up they are. It can be anywhere from 30-90 days post the 341 hearing. With a ch. 13, I do not think the discharge is set until after the last payment is placed.
Thanks, they are about 3 years in arrears. Tim
Short Sale Pro --
Will the lender negotiate a short sale if the debtor agrees to exclude that property from his Chapt 13 BK filing?
I have that situation right now. I own 1/3 interest in a land trust. One of the beneficiaries of the trust (the mortgage borrower / settlor) is filing chapt 13 bankruptcy. The house is over encumbered and I'd like to work a short sale with the lender and get 100% control of the property. Any suggestions?
P.S. The lender does not know I'm a beneficiary of the trust. They only know about their original mortgagor.
Check your PM