Short Sales and Chapter 13 Bankruptcy

Short Sales and Chapter 13 Bankruptcy

Chapter 13 bankruptcies are much different than a Chapter 7, and a professional will need to obtain approval from the court if they want to perform work for the bankruptcy estate. In a Chapter 13, normally debtors are surrendering underwater homes.

short sale property guidingThese homes can be sold: however the proper process needs to be followed or a realtor or an attorney could have their compensation denied by the court. If your homeowner files for bankruptcy protection, your deal may not be “Dead On Arrival!” However, if you have any possibility of selling the home, you are going to need the advice of an experienced bankruptcy attorney to walk you through the process.

As if there weren’t enough challenges with Short Sales already, bankruptcy creates another layer which scares everyone away. I look at it from the other side; a chapter 13 bankruptcy filing may make the sale go much smoother once the lien holders realize the chances of getting the house back have increased exponentially.

So in a nutshell, do not panic if your seller files for Chapter 13 bankruptcy, just contact a bankruptcy attorney and see if your deal can be saved. If so, please, please, please follow the attorney’s advice to save your deal and your commission.

DELLUTRI LAW GROUP
CARMEN DELLUTRI, ESQ.
KMarshall@DellutriLawGroup.com
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Phone: 239.939.0900
Fax: 239.939.0588
1436 Royal Palm Square Boulevard
Fort Myers, Florida 33919

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Posted on September 25, 2013, in Legal and tagged , , , , , , , , . Bookmark the permalink. Leave a comment.

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