Short Sale & Chapter 7 BK

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Owner has been discharged from Chapter 7 BK, but mortgage debts (1st + 1 HELOC both with Chase) were not reaffirmed, which if I understand correctly means he is no longer liable for?



If so, what is the strategy for negotiating SS with lender? Who is the owner in this case? Is a SS even do-able?



The first is a VA guaranteed loan .. will the lender discount more than 88%?



The sale date is still scheduled for end of Sep and still list owner as grantee on Deed of Trust.



Advice .. pointers appreciated. THANKS!

Comments(4)

  • TheShortSalePro9th September, 2008

    The owner is the owner until he is no longer the owner.
    The owner can try to reaffirm the mortgages, offer a DIL, or try a preforeclosure sale or preforeclosure short sale.

    The owner can list the home for sale and contact the lender for a workout, specifically asking for short sale consideration.

  • cjmazur9th September, 2008

    How can secured debt be discharged?

    It seems that the Chap 7 trustee would sell the sell the mortgage
    or
    The bank would be granted relief from the stay, and foreclose.

    http://www.moranlaw.net/secured7.htm

    (I have been stalking Chapter 7 Trustee sales for all sorts of stuff.

    100K judgment for $500
    royalty rights to 2 oil wells
    etc.

  • markorr9th September, 2008

    cjmazur --- I just saw your link to MoranLaw site -- THANKS!!

  • cjmazur10th September, 2008

    The security to holder is still "protected"...

    Thanks.

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