The information in this answer provided by Attorney Ranj Mohip is general information and is not intended as legal advice, nor does the attorney intend to create an attorney-client relationship with any reader by answering this question or otherwise contributing as a member of Trulia.com.
You should NOT have a problem, but make sure your agent and attorney and whoever is negotiating the short sale is aware of everything that's going on. This is a road block when it comes to closing if it was not properly handled with the bank and bankruptcy court. Make sure you have the right team representing you when it comes to short sales.
Best of luck!
KW Gold Coast
Yes, you can proceed with the short sale. Do you live in this house? Either way, you can ask your attorney to allow the short sale to continue during the bankruptcy. I think there is a form or judgement he'll need to get from the court authorizing the sale. We had a file recently where the seller went into bankruptcy. The lawyer did not file the appropriate papers, so the property being sold pretty much got frozen with all the other assets. Once the bankruptcy was complete, we proceeded with the short sale and closed the short sale.
Please call us directly to discuss your specific situation. Our services are FREE to homeowners. We look forward to hearing from you.
Eli Givoni, Director
Short Sale Department, LLC
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