Personal Bankruptcy Bankruptcy and Short Sale

[pmw730]

I recently filed bankruptcy (3/25/11) unaware that it would interfere w/my short sale which was suppose to close on 3/30/11. This is my first home, first short sale and I just didn't get the right info. I gave the BK office the info on the house and explained the short sale to the BK office but didn't say I wanted it on the BK as I was involved w/a short sale.

It looks like they included the house anyway and now the realtors are pushing me to get the BK lawyer to stop the filing but he doesn't want to do this. One of the realtors found out I can do a 323 motion to continue w/the short sale and then re-file the BK. I have no idea how to proceed w/this. The house was owned by me and my ex-husband who would be responsible for the deficiency if foreclosure happens.

I'm at a total loss, stressed and putting my job in jeopardy from all the realtor calls. Please help!

 

[despritfreya]

1. Each and every creditor and asset you have MUST be listed regardless of what you told your attny. You simply could not file a bk without listing the house and the mortgage companies.

2. You filed bk for a reason. So now you are going to listen to some dumb realtor and want to stop your bk. What's wrong with that picture?

3. Why on earth were you attempting a short sale, especially if you were contemplating a bk? The ONLY one who benefits from a short sale, in light of the bk filing, is the realtor. (Oh, and isn't it the realtor who wants you to drop YOUR bk - why am I not surprised?).

Once you file a bk you cannot sell anything without a court order or the abandonment of the asset from the bk estate. If you file a 363 (not 323) Motion to sell the property you better have your lenders in 150% agreement. It better put in writing that it will fully and completely accept each and every term and condition of the short sale. If it won't do that you can just forget getting a court order since the court has no authority to force your lender to take anything less than 100% of the debt. Filing such a motion is a complete waste of the court's time.

If you were my client I would have told you to drop your attempt at a short sale and simply surrender the property through the bk. The only thing you would have had to worry about would have been any HOA fees (if you have an HOA) that fell due from the day you filed bk to the day the lender foreclosed.

Maybe you should sit down with your attorney and ask "why am I trying to sell the home short. . . what's in it for me?". The answer is "nothing but aggravation".

Des.

 

[pmw730]

Thank you!!

Long story....Ive been thru the ringer....laid off, divorce, financial ruin and that's why the short sale and bk. The ex has done nothing to help and he is the reason they want to do this...so he doesn't have to deal w/the deficiency! My back was up against the wall esp. being out of work for 8 mos and having nearly no income and a son and debt.

I tried for months to do a loan mod but the lender took me for a ride and as time passed I became more and more desperate.