How does bankruptcy effect a short sell bid?
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How does bankruptcy effect a short sell bid?
I have a bid on a short sale in FL for cash, I have found out the owner filed for bankruptcy last month. The house is not their primary residence. How will this effect our bid?
Asked on April 12, 2011 under Bankruptcy Law, Florida
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Are you bidding with the help of a real estate agent or broker and do you have an attorney? To whom did you make the bid? The bank? The owner? Well, if the property is listed in the bankruptcy (in order to erase the mortgage debt) then I would without a doubt contact the trustee in the bankruptcy to discuss the offer. It sounds odd that they would list the property in the bankruptcy if they were trying to short sell it but maybe not. Make sure that the lender is on board with the short sale. You need to do a little extra work here with this matter but if you really want the house then you are probably getting a good deal considering the circumstances. Good luck.
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