If my spouse has a house already filed BK7 to discharge debt, can she do a short sale, will the lender go after her or me if I am not on the note?

Asked by CAROLINE LEE, Las Vegas, NV Fri Sep 24, 2010

If my spouse own a home already filed BK7 to discharge debt, can she do a short sale, will the lender go after her or me if I am not on the note?

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Sandy Van, Agent, Las Vegas, NV
Fri Sep 24, 2010
She can do a short sale or foreclose on the house if she filed bankruptcy so long as she did not reaffirm the debt and the debt has been discharged. If she did reaffirm the debt then she can shortsale the house and it depends on what the lender negotiates. They may ask for a promissory note or ask for a contribution at closing. Either way she should hire an attorney to negotiate the deficiency. (Our law firm Kung & Associates can assist you with this or feel free to hire an attorney you trust) Sometimes, the lender will pay for the attorney negotiation fees if you ask for them on the HUD I. If she reaffirmed the debt, she should not foreclose, because the lender can pursue her.

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.

Sandy Van
Realtor @ Keller Williams Marketplace I
Attorney @ Kung & Associates Law Firm (we practice in bankruptcy, real estate, collections, and most other matters)
1 vote
Pamela Maloof, , Las Vegas, NV
Thu Oct 7, 2010
You should call Haines & Krieger ask for Trent in the B. K. department. In a market where 9 out of 10 Loan Modifications fail, thehave a great success rate. As for B K's they are very knowlageable and stay by your side during the process. They are great at just answering questions with no preasure to use their services. so call them at 880-5554

Pamela Maloof
0 votes
Deluxe Realty, Agent, Las Vegas, NV
Fri Sep 24, 2010

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.

Good luck.
0 votes
Jillian Batc…, Agent, Las Vegas, NV
Fri Sep 24, 2010
Yes your spouse can do a short sale, of course we need to make sure it has been discharged. If the debt has not been discharged or she did reaffirm the debt then she can still short sale the house. Then we would need to negotiate with the lender. Their could be contributions or conditions when we go to close but again we can negotiate this through the short sale lenders. In Las Vegas there are also many Attorney's we can hire and interview to help with these negotiations and any future deficiencies.

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
702-595-8036 direct
0 votes
Ann Zambrana, , 89120
Fri Sep 24, 2010
Yes you can do a short sale! The question is do you have a 1 and a 2nd?
0 votes
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