If her bankruptcy is still ongoing and has not been discharged, then she can retain her attorney to file a stipulation (basically a legal document signed by both parties and the judge) stating that they agree to allow her to sell the home.
To see if she reaffirmed the debt, check the petition, or ask your attorney. You also may have reaffirmed the debt if she signed something after she filed bk., thereby entering into a new contract not included in the bankruptcy. If you are married then the lender may sue you, since NV is a community property state, it would be up to you to defend.
A person can sue you for anything, I could sue you for wearing the wrong colored clothing, it is up to you to defend, but this can get costly. You would have to bring up defenses, such as debt entered into prior to marriage, etc.
If she wants to short sale her home, she will have to get someone not in the family to list the house and someone not in your brokerage as there can be no relationship, unless of course you want to do it without compensation. Let me know if you need anything.
Realtor @ Keller Williams Marketplace I
Attorney @ Kung & Associates Law Firm (we practice in bankruptcy, real estate, collections, and most other matters)
Don't listen to any agents, as we are not attorneys. Contact a Real Estate Attorney. Any agent can attempt to help you short sell a home, even in your situation.
Unfortunately, a lender will ALWAYS be able to pursue the loss, whether they succeed or not; whether it ends up being noted as paid in full, or not. Contact an attorney.
When the banks start running out of foreclosures and short sales, what do you think they are going to use all of their employees for? I think it will be to review EVERY file, and look for anything that will help them recover funds. I think they will be looking more for strategic short sales and foreclosures, opposed to persons who were actually defaulting because they were unable to pay. It's going to be a long ride.
But we are a recourse State in Nevada so that does need to be looked into with an attorney. This is unfortunately common in Nevada but your situation is specific. So please contact myself or my team at anytime and we can go over your specific transaction in detail with you and give you FREE options. Thank you and We look forward to hearing from you and working with you.
Jillian Batchelor & The Batchelor Group