Short Sale After BK

Does anyone know if a seller can sell their home short after filing BK. I have a neighbor that filed BK last year but also kept the home making the payments, until now. Filing for divorce and stopped making payments because spouse lost job.So can it be listed for sale? Doesnt the bank have to file NOD and still go through the foreclosure process after payments stop coming?

You need to be a member of REO Pro Network to add comments!

Join REO Pro Network

Email me when people reply –


  • It looks like your in Ca. so I would suggest getting the Short Sale Addum. signed and not give any advise on this. I can see problems with telling the client what the consequences are. I would think that if the 2nd was written off in the BK you will still have to get that taken off Title to get the transaction to close. I would allow for extra time and that and start researching that aspect now. I bet they did not do a Reconveyance even if the debt was discharged.

    Also there could be a state tax consequence for the short sale.... I will direct my clients to the right attorney and CPA to discuss this. We had a short sale BLOW UP in an office I worked in and the client was in Law Enforcment. It was not pretty. I did not see the whole story, case, allegation but I dont think they had the Ca. Ass. Real Estate Short Sale form signed.... thus they were talking about paying the guy to go away... the loss was going to be far more than the commissions.
    • We have been told not to refer a specific attorney or cpa. Apparently there has been some bad recourse in the past and avoidance is the rule.
  • In the (long) middle of one right now. Does not seem to be a problem w/ a second. In fact the second agreed to 2k already, and the first is still asking about loan mods! There are some issues that the bk attorney will have to address, just a letter stating he is ok with the negotiation.
  • yes it can be listed for sale. A R.E. attorney and a rep from Chase confirmed with me about this. As a matter of fact, I have in the process right now.
    • Awesome, thank you for the information. Do you know anything about this situation if there was a second loan also included in the BK. Would this be just like another short sale in regards to the second requiring a certain amount of money to sign off.

      • Judge by the way of mine goes, I think it is just like any other short sale. The 2nd has to have some kind of money either paid by the 1st or by buyers in order to approve the short sale.
        Good luck Terri
This reply was deleted.