HOUSES IN CHAPTER 7....WHAT DO I DO?

Foreclosures, Short Sales, Tax Foreclosures
1

Hello Everyone,

I’m wanting to do a short sale on 2 properties.

There is only one problem the houses are in Chapter 7.

The bank said they have filed a “Release of Stay”, I believe that is what it is called. So they can restart the foreclosure process.

They told me to call the attorney in which the homeowner filed for bankruptcy, I called and they are not helping me at all.

The attorney told me that the bank has already filed for the release.

Thats fine but it won’t be released until June.
The bank said the sale date is in July.

I was just wondering is there anything I can do to hurry up and get the houses released.

I have heard that you can ask the Trustee to release the house from the bankruptcy.

The attorney doesn’t seem to want to work with me.

Can any one tell me EXACTLY what to do to get these houses out of bankruptcy? Or should I just wait?

I do wan to learn how to get them released.

Thanks in Advance!

2

If you are in Texas, you can have the borrower or borrower’s attorney to contact the Chapter 7 Trustee and file a motion called “Trustee’s Motion to Sell Real Property Free and Clear of Liens”. The wording of this motion states that the Trustee has received an offer to purchase the property and requests that the Court approve the sale of the property, etc.

If the borrower doesn’t have an attorney and doesn’t know how to go about filing this motion, the borrower can contact the Chapter 7 Trustee for assistance.

If the borrower is already in Chapter 7 Bankruptcy, he should have the contact info for the Trustee.

Hope this helps.

3

Howdy Certified FMM:

BK rules are Federal so the laws apply nation wide and not just Texas and IMrobinson is correct about filing motion to sale. This however will not speed up the process unless the trustee files some more motions to expedite your motion to sale. This still is a lot of trouble and the trustee usually has to want to do it and will get a fee for his friendly Realtor or some sort of payment. If there is no equity this may not happen. Also the lender or any other moveant has a right to object to the sale and have a hearing which may even be heard after the current motion before the court.

The short of it is just to wait and go to the hearing. If the lender is successful you will not have to deal with the court.

LOL and let us know how it turns out.

4

Thank You,

I will see if I can get in contact with the Trustee.

I might just have to wait it out.