Short Sale Partial Relief
I have a seller agreeing to a short sale however, the bank "jbnutter" says that since the homeowner filed for bankruptcy and that hud has issued them a partial relief in the amount of 4800 dollars that a short sale cannot be done. does anyone have suggestions? is the bank lying to me? at this point i have not spoken to the loan mitigator only the assisitant. the home is worth 105000 to 110000 and the total payoff is 94000 including all fees. any help would be appreciated.
They can't do a short while the homeowner is in bankruptcy. That much is true. Why? Because the bankruptcy prohibits the lender from collection activity and negotiating a short sale is a form of collection activity... so the more informed mortgagees steer clear of borrowers in bankruptcy.... unless/until the borrower defaults on the outside the plan and/or the plan payments... then the mortgagee seeks a lifting of the automatic stay and continues with the foreclosure...
If the Homeowner wants to sell.... he/she would need explicit approval from the Bankruptcy Trustee to enter into a listing agreement, and/or a contract for sale. Or, the homeowner would seek to have the bankruptcy dismissed.
I don't think that the partial claim has anything to do with their decision... but I haven't had much experience with partial claims and short sales.
After the automatic stay is lifted, can a shortsale be negotiated at that time? after the stay is lifted, to shortsale the property would the seller still have to get permision from the trustee for the short sale? any other advice would be appreciated, i'm a newbie. thanks, Fernando.