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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. Read the rest of this entry

Short Sales and Chapter 7 Bankruptcy

Short Sales and Chapter 7 Bankruptcy

Let’s face it bankruptcy complicates everything, Right?

Well, not really. Let’s say you list a home for a short sale. Many times, the homeowner has other financial problems besides the mortgage on his or her home. The homeowner may decide to file for bankruptcy. That’s OK. Your chance to complete the sale is not dead, but it is on hold. Read the rest of this entry

Can my mortgage company foreclose during my short sale?

Can my mortgage company foreclose during my short sale?

The answer is yes, they can start foreclosure, but why would they do it?  This is normally a situation where one hand doesn’t know what the other is doing. The bank/ mortgage company/mortgage servicer can start a foreclosure proceeding at any time once the homeowner goes into default.  Normally, a homeowner starts the short sale process once they have already defaulted, so the foreclosure process can begin at any time.   Read the rest of this entry

Condo Associations Million Dollar Windfall!

Condo Associations Million Dollar Windfall!

Recently I read an article about a foreclosure in Aventura, Florida. Actually there were two foreclosures. The first one was a foreclosure by the condominium association. This foreclosure came about because the owner stopped paying his homeowners fees on his million dollar condo. Naturally, the condo association foreclosed, obtained title to the property and proceeded to rent the condo out. Read the rest of this entry

What is the “Best Result” of a Short Sale? – Part II

What is the “Best Result” of a Short Sale? – Part II

If a Short Sale transaction is properly negotiated, the formal approval shall contain provisions that upon receipt of the proceeds from the closing of the short sale transaction, the Mortgage shall be satisfied and the Promissory Note cancelled/satisfied. If the Promissory Note or remaining indebtedness is addressed in the approval letter as being canceled or satisfied, the Short Sale Lender should issue a 1099C in the amount of the remaining outstanding indebtedness. If the remaining outstanding indebtedness is cancelled, there is no further obligation upon which a deficiency money judgment can be pursued. Whether the subject property is a primary residence or investment property, full and final settlements are possible. Read the rest of this entry