Short Sale Out Of Chapter 13
I am working with a homeowner that was in chapter 7 but had that discharged and filed a chapter 13 on the 7th of February. What is needed to get it out of bankruptcy? an approval from the trustee or judge? I hav never done one of these and this will be a good learning experience.
The home is 3 years old and has a first from Countrywide for 161 on it and a second from CITI for 19.
FMV 175-180
[addsig]
In order to address your question, please answer two.
What caused the Homeowner to change from a 7, to a 13? Did their financial situation change?
Are they using an attorney to prepare and file the petitions?
Maybe I have it mixed up and backwards. Regardless, how does one do a short sale in this situation? Petition the bankruptcy judge/trustee to allow the short sale to go forward with the bank?
I have heard that bankruptcy is not the big a deal to work around, I just have no experience in trying to do it
[addsig]
MEa Culpa..
IN reality as I have gleaned so far from trustees etc. there is really no effect on the sale of the home. Whether in 7 or 13 it all depends on whether there is equity or not, if the bank is willing to do a short sale then generally the trustee will sign a release as they recognize the property has no equity.
I will keep you all informed as I work through the ones that are in BNK.
[addsig]