Should I cooperate with this investor? and am I violating any status?
You need to talk to your bankruptcy attorney. If you sale or transfer anything while your in bankruptcy you have to get permission from the court. This is done by motion through your attorney. If you can short sale the property and have no deficiency balance it would be ideal!!
Someone would need to file a motion to sell the property. Your creditors would receive notice and have the right to object (including of course your bank). There are certain requirements that would need to be satisfied before the court will give permission for property to be sold free & clear of liens & encumbrances. If you aren't represented by an attorney, I would recommend that you hire someone to help you with this process.
First, you need to talk with your bankruptcy attorney. As previously mentioned, a Motion to Sell will be required. As a short sale, it is unlikely anybody will object. Yet,there are always issues and need to be discussed that are beyond the scope of this forum.
If you have an attorney please consult him or her about this matter, and have them review all the documents that you are being asked to sign - before you sign them.
To propose to "surrender" property in a chapter 13 plan does not typically or automatically take the property out of your name. It still has to be sold, if only at a foreclosure sale, or you remain the owner of record.
That is why we recommend that our clients pursue a short sale in such cases when they cannot do a regular sale, to make sure that the property is actually removed from their name. Some mortgage companies have been taking an awfully long time to foreclose.
Otherwise, if the mortgage company does not foreclose for some reason, you can remain liable for homeowner association dues, taxes, and even possible liability if someone were to go on the property and be hurt.
Whereas it may be possible to negotiate a relocation allowance for you in a short sale situation. But yes, you may need to file a motion to sell with the Bankruptcy Court to authorize the short sale, and to satisfy the purchaser's title company.
We are a debt relief agency and we help people file for relief under the bankruptcy laws.
I'm assuming your chapter 13 case is still pending. If so, ask your attorney to verify that this is in your best interest (it certainly could be). If so, you'll need to obtain approval from the Bankruptcy Court before going forward with the short sale. If, on the other hand, you are already done with your chapter 13 (i.e., you received your discharge or were dismissed), you may move forward with the short sale.
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