QUESTION

What is Short Sale Vs Standard Sale after Bankruptcy is settled?

Asked on Feb 20th, 2013 on Bankruptcy - Arizona
More details to this question:
My Chapter 7 has been settled and is closed, I am surrendering my investment properties, one was taken back in a deed-in-lieu and the second was sold at short sale. I have an offer for actually more than I owed on the third property that was listed as a short sale as requested by PNC. At the time of filing BK I owed approximately 88K and the offer is 105K. PNC says they will accept 115K. Just what are they entitled to as far as the sale of the home?
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6 ANSWERS

You need to contact your bankruptcy attorney as soon as possible. You, or possibly the trustee, may be entitled to some of that money.
Answered on Feb 26th, 2013 at 2:53 PM

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Bankruptcy Attorney serving Plantation, FL at Moffa & Breuer, PLLC
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They are entitled to be paid in full for the balance of the loan.
Answered on Feb 25th, 2013 at 2:22 AM

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Estate Planning Attorney serving Wilmington, DE at Reger Rizzo & Darnall, LLP
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A short sale is where mortgage company agrees to let you sell home for less than balance owed but be careful they release you from balance in full.
Answered on Feb 24th, 2013 at 1:30 AM

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Bankruptcy Attorney serving Overland Park, KS at Wellman Law LLC
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Something seems to be missing from this picture. You don't need their agreement to sell it for more than what is owed because they would be paid in full at closing and have no say in sale price if so. I'm not sure how long ago your case was filed, but it's not unheard of that a Trustee would find out about a sale of this nature and reopen the case, go after the asset and perhaps even challenge the discharge if the valuation appears to have been grossly inaccurate. Of course there would be a potential counter-argument that there was a legitimate basis that the value was what was stated at the time of filing, but I would talk to an attorney.
Answered on Feb 24th, 2013 at 1:17 AM

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Deborah F. Bowinski
The lender is entitled to retain all proceeds of a sale up to the amount that you owe them under your loan contract. That would include not only the principal balance that's as owed when you filed your bankruptcy but also all arrearages, interest charges, late fees, inspection fees, foreclosure and attorney fees, etc. If you wish to know what that actual payoff of your loan would be you can request that information in writing from the lender.
Answered on Feb 24th, 2013 at 1:17 AM

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Bankruptcy Attorney serving Phoenix, AZ at Law Office of D. L. Drain, P.A.
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Be very careful about what you are doing. You worked hard to get your discharge, don't throw it away. Talk to your bankruptcy attorney or a good real estate/foreclosure attorney.
Answered on Feb 24th, 2013 at 1:16 AM

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