Home Buying in Long Beach>Question Details

Anthony, Home Buyer in California

In Escrow and Seller has filed for Bankruptcy.We are about to close escrow in 1 1/2 week and I just found

Asked by Anthony, California Fri Aug 15, 2008

out that the seller has filed for Bankruptcy. It's a short sale property. Everything on our side (buyer side) has been taken care of, contigencies have been released we are about to sign the load docs.

What can we expect? are we still going to close on time?

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Answers

3
Hello Anthony,

No you are not going to close on time. If the Bankruptcy petition has been filed that stays/stops any pending transactions that are subject to the bankruptcy. To confirm this for certain as I am not an attorney ask your buyer's agent and see if they have in-house counsel. If not, seek the advice of an attorney,

Best,
Monique Carrabba
Keller Williams WIlshire
Realtor and Eco Broker
The Reavis Group
mcarrabba@kw.com
0 votes Thank Flag Link Sat Aug 16, 2008
Hi Anthony,

Verify that the bankruptcy includes the home you're buying - it almost certainly does.

Check with an attorney about petitioning the bankruptcy court to have this "asset" the house removed from the bankruptcy proceeding.

But, remember, just because everything on the buyer's side has been taken care of you're ready to sign loan documents doesn't ensure that the lender is/was going to complete the sale. It's worth checking the status of the short pay again. It may be that the negotiations between the seller and lender broke down. If so, the bankruptcy filing might help pressure the lender to finalize the sale.

Good Luck,

John Hickey
Dilbeck Realtors, GMAC
818-541-7311
John@JohnHickey.com
0 votes Thank Flag Link Sat Aug 16, 2008
Your transaction is in trouble. The bankruptcy court referee is going to have to decide if your offer is a fair one. You may still get this property, but you're going to have to wait for the BK process to finish.
0 votes Thank Flag Link Fri Aug 15, 2008
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