Post Bankruptcy Short Sale Solution
Apr 12, 2012OUTCOME: Complete discharge in the Chapter 7 bankruptcy and a successful short sale with the bank paying them $13,000 at closing.
I took a couple through a Chapter 7 bankruptcy in 2010, at which point they were years behind on their mortgage and in foreclosure. We "surrendered" the home in the bank although the clients were allo ... wed to stay in the home without paying anything. A "surrender" in bankruptcy does not actually convey the property to anyone, so they still owned it after the bankruptcy case was closed. In April of this year, we completed a short sale for them. The bank-approved sales price was $66,000 and we were able to get them a bank incentive payment of $10,000 in addition to the $3,000 HAFA incentive. They not only got a discharge of all of their debt in the bankruptcy, but we gave them full closure in that the real estate is out of their name which means no further obligations from the HOA, etc. and of course the bank's incentive payment was excellent!
