Short Sale

I have an accepted offer for a short sale....only thing is that the seller has filed bankruptcy. So anyone ever have experience with a short sale where the seller has filed for bankruptcy as well? My attorney tells me this could be a long process, but I'd like to hear if anyone has had experience with this or has some insight? Thanks!

Re: Short Sale

in simple terms- the bank can not approve a short sale once the seller files BK

this is done to save the home for the seller

I would advise you to get your money back and move on

the seller obviously doesn't want to sell the home or they wouldn't have filed BK

Re: Short Sale

Yes, a bankruptcy filing freezes all of the filer's assets (as soon as the bankruptcy is filed). A home, or any type of real estate, owned by the bankruptcy filer cannot be transferred or sold once bankrupcy is filed.

Usually, people will file bankruptcy as a tactical move to stop a foreclosure proceeding (which is part of why it takes so long for banks to close on homes in NY). But unlike with a foreclosure, it's NOT in a seller's interest to file bankruptcy if they are trying to accomplish a short sale. But who knows what's really going on and what the seller's motivations are!

All that being said, you should really consult with your real estate attorney, who is more familiar with your situation, about your options.