Re: How to proceed on this one - Posted by B.L.Renfrow
Posted by B.L.Renfrow on July 08, 2003 at 24:01:09:
You should contact the trustee. The debtor’s attorney has no control over whether the trustee will release assets.
You don’t mention which chapter the debtor has filed under, but I suspect it’s chapter 7. In that case, I would anticipate the lender will quickly file a motion for relief of the stay so they can proceed with foreclosure. This is routinely granted by the court unless the debtor contests the motion and can show compelling evidence why it shouldn’t be granted.
As for short sale, if the FMV is $105k (or even $95k, if your repair estimate is accurate) and they are only owed $65k, what possible motivation would they have to agree to a short sale? Would you, if you were the lender? They will make out just fine by proceeding with foreclosure and sale. You can always ask, but I doubt they will consider it in this case.