Accepted Short sale but then chapter 7 bankruptcy

My cilent who is in forelcosure had a lawyer prepare paperwork to file chapter 7 bankruptcy way before i came into the picture. My client wanted to file for bankruptcy so that he can postpone the sale of his proeprty for 3 months so he could save up money to get an apartment. I came in a did a short sale on the house. The short sale was accepted and the foreclosure was postponed by the bank. I got the homeowner to move out and get into an apartment. My client’s lawyer was stupid and didn’t check with my client, the sherif department or me to see if the sale was postpone and issued the bankruptcy in behalf of my client. Is there a way for me to still pick up this property? The payoff date on the house is august 30th. But the bankruptcy was filed last thursday. please HELP… THANK YOU in advance!

I’m lost. How did the lawyer screw up?

Did the lawyer file or not. Is the bankruptcy discharged? I would say contact the bank and buy it or just bid on it at the auction

Yes the bankruptcy was discharged. So the lawyer screwed me up because now my buyer can’t buy the house and we were just about to close on the house this thursday!

Correct me if I’m wrong…

You have a payoff(s) from the lien holder(s) that are still within date. You are ready to close but the property was entered into Chapter 7, which killed the transfer of title, thus the sale of the property (ie. your short sale).

If this is correct…

The attorney can have the property itself release from the chapter 7 by request of the homeowner. Once the property is release you can close as normal. The key is getting the attorney to release the property from the chapter 7 ASAP. It has to be done prior to the expiration date of the payoff letter or you will need to have the date extended by the bank.

Good Luck! :beer