I have a homeowner that is in bankruptcy (Chapter 13). He is now 3 months behind with the bankruptcy payments and the bank has asked the bankruptcy trustee to dismiss the bankruptcy. I am stuck between the bankruptcy trustee and the mortgage company. I want to do a short sale, but the mortgage company says that the bankruptcy attorney must allow it and that the homeowner cannot do anything without going through the trustee. Should I wait until the bankruptcy is dismissed before trying to buy the house? Once the foreclosure proceeding start, I am not sure I will have time to request a short sale because in GA it only takes 4 weeks to forelosure. The homeowner also haas a VA loan, does that affect doing a short sale? Another question, if I wanted to do a subject to, can you do that with a VA loan? I know it is a lot of questions - sorry.
Sorry, I can’t offer any advice regarding the bankrupcy, but I will say that SS with VA loans are my favorite. The VA loves to buck the lenders. In other words, they don’t take any crap from them. As long as you can prove that its in the tax payers best interest, then VA will stop a sale and give more time for a work out option. They have stopped several for me within 2 days of the sale date. But, like I said, if you can prove to the VA that your proposal is in the tax payers best interest, then they will usually assist you.