I have a friend who has broken up with her Husband. Their home was about to go into foreclosure, but her Husband filed BK. She wants to list her house with a realtor. Can she do that (with his permission, of course). Can they do a short sale? Who pays the realtors fees? How does this affect their credit? Thank you so much for your help. :-*
it can not be sold unless the BK trustee abandons the asset.
If you were doing this, yo uneed to prove to the BK trustee that there is zero equity in this property.
Remeber the BK trustee is not working for your friends ex he is working for the people he owes money too.
Yes, listing with a realtor is possible. Yes, a short sale is possible. The realtor’s commission will be baked into the purchase price. If they are in foreclosure and they just filed BK, their credit is shot anyways - not much to worry about. However, if a SS is successful, their credit should improve quickly after BK is cleaned up. Depending on jurisdiction, BK court would have to approve some or all of the above.
you might list it, you might get a contract but YOU CANT SELL IT!
The bankruptcy trustee must abandon the asset.
IF you short sale it and list it and all the other stuff above, the trustee will simply sell it from under you.
You have just saved th etrustee work and created equity fo rall the creditors… Good job.
Look at the bankruptcy law Oct 19th 2005
But what if the only thing in the BK court is the house? The Husband is paying the BK as required. I think that their is some equity in the house. Now what?
it is highly unusual that he has been accepted for bankruptcy only with the house, he would have needed to show more debts than just the house.
Turbo is correct in a way too, you can short sale, you can get a buyer but you can’t sell until it has been abandoned by the trustee.
Is the husband willing to work with his ex?
will he allow her to get it sold?
if so basically do a short sale package for the trustee and show them it is not worth his time, provide estimates for repairs, comps everything to back up your offer.
But don’t tell the Bk trustee you are doing a short sale with the bank, he will take it over and sell it from under you.
Thanks so much for your help. The husband and wife are both willing to work together. I’m not sure what you mean by preparing a short sale packet for the trustee? Do you mean, have the wife contact the mort. company for a short sale packet and proceed from there? Should the Husband QCD his interest directly to the wife since she didn’t enter the BK with him. By the way, the BK was approved because the Husband is actully on workmans comp and his salary isn’t the same so I believe that’s why they approved it. When contacting the loss mit. dept. should the wife indicate that she is aware of the BK or just tell them that she has a contract and would like to proceed with short sale? Also should she present the short sale to the BK courts as though the bank has approved it? Please explain how the Trustee abandons the asset?