I’ve got a deal I’m working on and the h/o decided to file bk and i’m wanting them to wait for me to negotiate a short sale.
If we have a short sale working in place can the lender still lose the home to BK? Does the BK over rule all? is BK God? in the sense that regardless of what is going down if the h/o files for bk will everything get wiped out (as far as negotiations)?
And will I lose the deal if the h/o files bk?
if the property is included in the BK then yes, you can NOT do a short sale until discharge or the prop is released from the proceedings. IF the lender will still talk to you after BK is filed you might be able to still negotiate the deal with the stip of, pending a SS acceptance the property will be removed from the BK proceedings. But this route is a royal pain in the butt.
I would try to get the HO to wait until you have submitted your ss pkg. Let the bank know the HO is filing BK and try to use that to motivate an acceptance of the SS offer. Lay out a time line for the HO to keep their attention occupied, then stick to it religiously. If you can’t get an acceptance by the end of that time line then don’t expect the HO to hold out any longer.
GooD LucK! :beer
I’m not trying to step on anyone’s toes. As I am sure we all want the best for this deal and for the information that other well find when they search for this subject.
The previous poster noted " if the property is included in the BK". This is incorrect. It is a common misconception that you can include and exclude items from the bankruptcy. The debt itself may not be included with what you may be paying to the trustee but that does not mean the house is not included in the BK. As for the BK it covers all the creditors you owe money. The bankruptcy will have to be dismissed by the courts because you did not keep up to the trustee payment or because no payment was made to the lender to catch up and they are granted relief and are allowed to proceed with collection activity. Best of luck.
Regards,