I'm in the process of buying a short sale property and in the middle of the banks negotiation, owner informed us that they decided to file for bankruptcy. Do anyone have any experience with this? How will this affect my short sale? Any tips and advice to navigate this will be extremely helpful.
This also depends on how far along you are in the process. The farther along, the more likely you will be to close, but if not.....you should look for other properties.
Hope this helps
Tony Abad
Realty World
925/325-9546
http://www.TonyAbad.com
An owner bankruptcy may stop the foreclosure process, limiting the bank's ability to sell the property until the bankruptcy is settled. You may want to think about other properties at this point unless the owner, bank and owner's attorney all agree on a deal.
Dear Leigh
That should not affect the banks decision on selling the property short they are going to be taking a loss on the property anyway. Now if the seller is trying to keep the home in the bankruptcy that will affect the transaction. I would definately find that out immediately so you are not wasting your time with this transaction.
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