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  1. #1
    Join Date
    Apr 2012
    Posts
    5

    Default Home Seller Filed Bankruptcy with Short Sale Pending

    My question involves real estate located in the State of: California
    We are trying to buy our first home. We have a signed purchase agreement from the seller. The bank approved the short sale within 2 weeks with a closing date of 04/20/2012. *Everything was going smoothly then we find out a couple days before closing that at some point the seller had filed bankruptcy . Seller sending a letter to bankruptcy court asking this house won't be include as an asset. *Chase bank ( lender) also accept that and they said they will extend the escrow date. How likely will it take that the bankruptcy court accept sellers request ( the house not to be included as an asset) ? How long will it take? *Since the closing date is 04/20/12, we already gave our 30 days notice for our apartment. *Should we remove our notice.? Since this was not our fault, can we ask for a credit from seller bank or agent?
    Thank you in advance.

  2. #2
    Join Date
    Sep 2005
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    Default Re: Home Seller Filed Bankruptcy with Short Sale Pending

    We cannot promise how long it will take. If the matter is properly noticed to the bankruptcy court, though, the judges usually rule pretty promptly.

    You can ask whomever you want for whatever you want, but I would not expect the agent (who is presumably already working on a reduced commission) or the bank (which is presumably already taking a loss) to offer much if any additional incentive.

  3. #3
    Join Date
    Apr 2012
    Posts
    5

    Default Re: Home Seller Filed Bankruptcy with Short Sale Pending

    Thank you so much for your quicinterlude. I just got informed that in order for seller to
    complete the sale of thier home which is a part of the bankruptcy, it is
    necessary for the Bankruptcy Court to approve of the sale in a “noticed
    hearing” in which all of the creditors have been given notice of the hearing
    and been given an opportunity to object (it is unlikely that there would be
    objections at the hearing and that the approval order of the court will issue).*
    They seller agent informed me that the typical time frame between
    the day on which they request a hearing date and the date of the hearing upon
    which the order will be granted is generally 30 to 45 days from the date of
    the request.* If we assume that atternry works very fast and
    gets the paper work done in the next two or three days and then is ready to
    request* the hearing date, the date for the hearing will probably be given
    by the BK court next week sometime, or assuming everything goes on time the
    date will probably be set for sometime between May 18 and* the first- second week
    in June. Should I ask for a coy of the letter? Is there any chance? What if the BK court doesn't accept it, do we still have a chance? does the seller point of view make spence?

    Thans

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