Chapter 13 Plan and property short sales
Posted: Wed Apr 27, 2016 1:00 pm
See CCP 580 regarding non-recourse loans - not 100% clear on whether loans were for a borrower occupied propert within the definitions found in that section.
I prefer abandonment to sale approval when there is no substantial risk of foreclosure trustee's sale looming. Surrender isn't necessarily effective until plan confirmation.
Sent from my iPhone - please excuse typos.
> On Apr 27, 2016, at 12:12 PM, Tuan Le tuanl@stevelopezlaw.com [cdcbaa] wrote:
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> Hi Peter,
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> Thanks for the info. It was one of those 80%/20% loans where the house was a fully financed purchase. In this case it seems better to short sale the property to lower the Class 5 claims since there is a lot of equity in the home. So even if the debtor indicates on the plan that they will surrender the property, they can still move forward with the short sale? Does debtor need a motion to approve the short sale or just a motion for authority to sell the real property or both?
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> Regards,
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> Tuan Le
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> DISCLAIMER: This e-mail may contain confidential information and may also be legally privileged. If you are not an intended recipient, as indicated above, please notify us immediately. In such event, you should not copy or use this e-mail for any purpose nor disclose its contents to anyone. Enclosed information and attachments remain the property of the LAW OFFICE OF STEVE LOPEZ. Opinions, conclusions, attachments, and neither information in this message that do not relate to the official business of the LAW OFFICE OF STEVE LOPEZ should be understood as my personal responsibility, and as neither given nor endorsed by the LAW OFFICE OF STEVE LOPEZ.
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> Sent: Wednesday, April 27, 2016 11:51 AM
> To: cdcbaa@yahoogroups.com
> Subject: Re: [cdcbaa] Chapter 13 Plan and property short sales
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> Is the second note purchase money, refinance of purchase money, or an equity loan? If creditor has no recourse against the debtor then surrendering the property through the plan may provide your client with sufficient time to get a short-sale escrow ready to close. Abandonment is sometimes a better option than a motion to approve short-sale.
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> Sent from my iPhone - please excuse typos.
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> On Apr 27, 2016, at 11:43 AM, tuanl@stevelopezlaw.com [cdcbaa] wrote:
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> Dear List,
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> I have a Chap 13 client that is trying to save a home that has equity and has another property that has 2 loans with the junior lien completely unsecured and first lienholder partially unsecured. If the client is attempting to short sale the property in the bankruptcy how should the plan be structured? Should the plan provide for the unsecured portion then if the property does sell then obtain a modification of the plan (assuming confirmation)? Or is it better to leave out the unsecured portion hoping that the property will sell prior to confirmation hearing? Property is already in escrow.
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> Thanks,
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> Tuan Le
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> DISCLAIMER: This e-mail may contain confidential information and may also be legally privileged. If you are not an intended recipient, as indicated above, please notify us immediately. In such event, you should not copy or use this e-mail for any purpose nor disclose its contents to anyone. Enclosed information and attachments remain the property of the LAW OFFICE OF STEVE LOPEZ. Opinions, conclusions, attachments, and neither information in this message that do not relate to the official business of the LAW OFFICE OF STEVE LOPEZ should be understood as my personal responsibility, and as neither given nor endorsed by the LAW OFFICE OF STEVE LOPEZ.
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