I’ve heard that it is good to comment to the bank that if a deal is not arranged, the seller will have no choice but to file bankruptcy. I have a deal in which the seller has already filed bankruptcy (chap. 7). Not yet discharged but the stay has been lifted on the mortgage and foreclosure is in the works. Have I lost some bargaining power since the seller is already in bankruptcy?
As a loss mitigator myself, I don’t really care if you tell me they are considering BK. I here it so much it’s not a bargaining tool. If their already considering a short sale, I know they will have to file a chap. 7, I can have relief from a chap. 7 within 30 days. Besides, I’ve got so many other deals I can do right now, the 30 day break would be a breath of fresh air.
Thanks,
Thanks! I was just thinking that if the bankruptcy was discharged prior to a SS that the lender wouldn’t be inclined to deal because they know the seller can’t file bankruptcy again, so they can get a judgment against him. Is that not true?
It does not matter to me if the bankruptcy is discharged or if they have never filed BK. The thought never crosses my mind. The most important things I am concerned with is:
[]What is the value of the property?
[]Is the value of the property less than total debt?
[]Is the debtor able to continue making payments?
[]When is the Foreclosure Sale
Is this starting to make sense to you?
The greatest bargaining position you will have is you have the ability to influence the value of the property by meeting the lender’s appraiser at the property with your comps in hand.
Hope this helps,