Posted by NJDave on April 27, 2006 at 09:15:48:
People mistakenly think that mortgagees fear mortgagors’ bankruptcy… To the contrary, many lenders welcome the bankruptcy… and (in the case of Chapter 13) use the bankruptcy court to act as their private collection agency. In the case of full liquidation, the bankruptcy can expedite the lender’s recovery.
Mortgagee’s policy and specific (to the subject loan) criteria will dictate how the deficiency is addressed.
Short Sale and Bankruptcy - Posted by John Teller
Posted by John Teller on April 27, 2006 at 09:06:00:
Hi Everyone,
I spoke with Lori from CRE this morning and she gave me some great advice and suggested posting here for help.
Would someone please tell me how using the possibility of bankruptcy by the homeowner of the house might possibly help in the short sale process? I think that it has to do with the bank not wanting the house tied up any more than it already has been.
Second, how would you negotiate getting an unconditional waiver and release of any liability with respect to the property for the current homeowner from the difference that is owed and what I am willing to pay. Any help will be appreciated. Thank you CRE for allowing me to post.
John Teller
916 496 1532
916 813 2827