I have a homeowner that is in bankruptcy and wants me to buy his house. He has little to no equity and the only way that it will work is to do a short sale, but I am not sure the trustee will allow a short sale. I seem to remember reading somewhere that it is of no benefit to the trustee to have a discounted mortgage. Any thoughts?
Not an expert, but I had a similar situation happen to me. Homeowner even signed the deed over only to have his bankruptcy attorney call and tell me the owner was not allowed to sign over the property while it was in bankruptcy. I was told later that the house can be taken out of bankruptcy (by the attorney) and then you can short sale the home from the lender. This was in California. Not sure about other states.
In California, you cannot sell your property up to a year prior to filing Bankruptcy and not afterwards until you get the green light from the courts.