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Short-Sale and title/loan issues
Why are you worried about this? This is not your client's problem. This is
the buyer's problem. Give the buyer a little notice, so the buyer cannot
claim that s/he was defrauded and file your case.
David A. Tilem
Certified Bankruptcy Specialist*
Law Offices of David A. Tilem (a debt relief agency)
206 N. Jackson Street, #201, Glendale, CA 91206
Tel: 818-507-6000 Fax: 818-507-6800
* Bankruptcy specialist cert. by State Bar of CA Bd of Legal
Specialization.
sofiya
Sent: Monday, October 11, 2010 12:28 AM
To: cdcbaa@yahoogroups.com
Subject: [cdcbaa] Short-Sale and title/loan issues
PC short-sold his primary residency in April of 2010 but the title has not
been recorded yet. The new purchaser is having difficulty with financing the
loan, and so the PC is still on the first loan and on title. The second
lienholder settled for $35K and the remaining balance is now an unsecured
debt. PC has only $4K in Credit card debt but wants to file ch 7 bk to
discharge the balance owed to the second lienholder. PC wants to file bk
right away but I am advising him to first have the buyer record the deed and
then file, otherwise the property would need to be listed in his bk petition
(he is still on title) and will be part of his bk estate until/unless the
trustee files the "No Asset" report. Also, since the second loan is now
gone, my concern is that if PC files right now without first waiting for the
buyer to record the deed, the property technically has some equity (at least
per Zillow) and I'm affraid that the trustee may want to liquidate it. As
mentioned above, PC only has $4K in CC debt and the balance on the 2nd loan.
If PC agrees to wait on the filing until the buyer records the deed, how
long should PC wait before he files ch 7 bk. As always, Any help will be
greatly appreciated!!!
Sofya Davtyan
Attorney at Law
Message
Why are you worried about
this? This is not your client's problem. This is the buyer's
problem. Give the buyer a little notice, so the buyer cannot claim that
s/he was defrauded and file your case.
David A.
Tilem
Certified Bankruptcy
Specialist*
The post was migrated from Yahoo.
PC short-sold his primary residency in April of 2010 but the title has not been recorded yet. The new purchaser is having difficulty with financing the loan, and so the PC is still on the first loan and on title. The second lienholder settled for $35K and the remaining balance is now an unsecured debt. PC has only $4K in Credit card debt but wants to file ch 7 bk to discharge the balance owed to the second lienholder. PC wants to file bk right away but I am advising him to first have the buyer record the deed and then file, otherwise the property would need to be listed in his bk petition (he is still on title) and will be part of his bk estate until/unless the trustee files the "No Asset" report. Also, since the second loan is now gone, my concern is that if PC files right now without first waiting for the buyer to record the deed, the property technically has some equity (at least per Zillow) and I'm affraid that the trustee may want to liquidate it. As mentioned above, PC only has $4K in CC debt and the balance on the 2nd loan. If PC agrees to wait on the filing until the buyer records the deed, how long should PC wait before he files ch 7 bk. As always, Any help will be greatly appreciated!!!
Sofya Davtyan
Attorney at Law
The post was migrated from Yahoo.