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Mike J, Home Buyer in Redwood City, CA

Question about bankruptcy, foreclosure and short sales...

Asked by Mike J, Redwood City, CA Thu Jun 6, 2013

Situation: A seller has begun a short sale process with a buyer; their sales agreement has an "exclude property from bankruptcy" clause and escrow is opened. After escrow is opened the seller initiates bankruptcy proceedings. Can the lender, who hasn't yet approved the short sale, move ahead with a foreclosure if they decide that is their best option?

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4
Bankruptcy is not the answer to everything. It's important to consult an expert before making any decisions along these lines. Often there are more practical answers to addressing even your business's most dire needs.
for more info about bankruptcy: http://freshstartsolutions.com.au/bankruptcy/#bankruptcyoption
0 votes Thank Flag Link Thu Aug 22, 2013
It should be clear from the other responses: please consult a lawyer. First of all, a seller does not begin a short sale process with a buyer, but with the bank(s). I am assuming the purchase agreement has the bankruptcy exclusion. Did you speak with the bank who is processing your short sale about this exclusion? In a bankruptcy, a property can be "sold" if excluded from it. Ask the lawyer.
A
0 votes Thank Flag Link Fri Jun 7, 2013
Mike J,

You need professional help to sort this out - do not rely on any advice you get here unless the individual responding is a Lawyer or CPA!

"6 Tips for Finding a Good Bankruptcy Attorney"
http://www.dailyfinance.com/2011/06/16/6-tips-for-finding-a-…

"How to Find a Bankruptcy Lawyer"
http://www.nolo.com/legal-encyclopedia/how-find-bankruptcy-l…

If you need to find a CPA visit:
http://www.aicpa.org/ForThePublic/FindACPA/Pages/FindACPA.aspx

-Steve
0 votes Thank Flag Link Fri Jun 7, 2013
This is an issue which you should discuss with an attorney.
0 votes Thank Flag Link Fri Jun 7, 2013
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