Posted by JT-IN on March 10, 2002 at 09:37:27:
First suggestion is, hit your CAPS button, and post in lower case letters; it is considered to be rude and “shouting”, when posting in all caps.
To attempt to briefly answer your questions…
Short Sale: When a lender agrees to accept less than the payoff amount, to satisfy the mtg indebtedness. This will require certain qualifying by the borrower, and proof that the ability to satisfy the shortage does not exist. It is also a time consuming process. Bankruptcy is not necessary, in fact, not preferred, as this will then involve the Trustees sanction to complete the SS.
In BK, you will need the Sellers approval, and the Trustee, unless the owner has the ability to withdraw the BK filing. The owner may have up to 5 yrs to recify this matter, if filing a Ch 13. Usually, it is far less time, as most folks do not follow the process as intended, and the BK may be discharged, being used only as a time management tool to stop the FC sale.
Deep subject here, and one that you should do a search in the archives on, and spend hours reading what has been previously written.