Hi We are trying to put togehter our first short sale and the bank says that we can’t do a short sale because the homeowner has filed chapter 13. I suspect I am talking to some flunkie at the bank, but is it true about the chap 13? They filed chap 13 and have missed their payments since doing so, and I thought that once they miss a payment in chapter 13 the bank can continue with the foreclosure. Please help! Thanks
MN newbie
Howdy MN:
The banks hands are stilll tied due to the BK. They can file a motion to lift the stay. They may have already had an agreed order also giving them the right to foreclose if a post petition payment is missed. The trustee will also eventually file a motion to dismiss if those payments are not made. The whole process could take 3 to 4 months however. You just need to wait the thing out or file your own motion with the court asking to get the short sale approved. If the bank agrees to the sale then you will have a deal. If anyone objecys to the motion, a hearing will be set to hear the motion.
Here again your hearing may take 2 months to be heard.
Hope this helps some.
Ted
Thank you for getting back to me. I have done some calling to follow up on what you said and susequently found out that her house was not included in the foreclosure like she had thought, so it may work out. Thank you so much for your time!! I really apreciate this website and all the good advice!!
MN newbie