Chapter 13 And Short Sale
I am in the process of doing a short sale on a property and the homeowner is in chapter 13. The bank has told me that they need an authorization letter from the bankruptcy attorney for the homeowner to discuss the short sale with me. When I called the attorney he called the homeowner and said he will not talk to anyone but her she is his client. He also told her that the bank intends to foreclose and he needs $350 to do a workout. ??? They have already done a repayment program and the homeowner is having trouble. The best thing for her would be a short sale if the bank and the trustee agree to it. Why is this attorney not doing what is in the best interest of his client? I was going to draft a letter of authorization for the homeowner to send the attorney via registered mail giving him authority to discuss the case with me. He will then be put on notice. Does anyone have any suggestions as how to handle this situation?????
you are dancing in a grey area..
bankruptcy laws prevent the mortgagee from collection activities while the homeowner/mortgagor is in bankruptcy.
discussing a short sale is considered a collection activity.
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