Is it possible to work a short sale offer if the owner is in Chapter 11 Bankruptcy. He’s willing to sell but will need permission from the court. I’m just wondering if the bank will take an offer if there’s equity in the property.
Also, how can I get around paying the second lien. Especially is the 1st lender discounts the note??
Thanks
Howdy Faith2005:
You cannot get around paying the second lien something. They must agree to the sale as well as the 1st lien holder and the trustee and judge and all the other creditors. If after notice to all parties you can not get an agreed order you will have a hearing to work out the details of the sale. It is best to work out the details first with the lien holders and then make the motion to sell to the court with agreement from the lenders. Sometimes 1st lien holders will not discount if 2nd lien holder get more than a dollar. If there is a lot of equity over and above the two liens neither has to discount and sell and could just wait out the Chapter 11. It has to be a business to be Charter 11. Right ?
Thank you for the info.
I actually talked to the owners attorney last week and he gave me the name of the trustee to discuss the matter with. The lost mitigator finally called me back also. Her message stated that the owner had to provide them with financial statements, W-2’s etc…which I thought was weird. That sounded like a set up for some sort of forebearance agreement. I plan to get more information when I call her back next week.
The owner has his own practice, which is how he was able to file Chapter 11. He’s long gone from the property and has set up his practice and family in a different state.
More to come…