(Illinois) Can short sale be pursued if bankruptsy has been started?

Customer has moved out and is renting, has made no payments (1st or 2nd mtg.) about 6 months and has filed for chapter 7. Can anything be accomplished here?

You sure can! You will just need a letter to realse info from the attorney as well as the home owner.

Thank You!

I’ll second what Summit posted.

The Bankruptcy trustee will look at the assets of the applicant with the goal of liquidating any assets which could be sold to satisfy obligatoins to the creditors. If it can be readily shown that this RE assets has no equity, and you have a bona fide offer to buy which the bank is willing to accept for short sale payoff, the Trustee will “abandon” the asset because it adds nothing of value for the remaining creditors (who have no super lien interest in the property).

From BK application to abandonment could take 3-6 weeks, however. I’d love it if others with more experience would comment on your question. This is just what I’ve learned from BK attorneys as I have no personal history with this effort.

Good luck!

Your input is very much appreciated