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Chapter 13 and Short Sales

Licensed Real Estate Broker

Salt Lake City, UT

May 19, 2010

I am considering taking on a short sale where a Chapter 13 has been filed. The seller wants to do a short sale, and has not included the mortgages in the BK. The court needs to approve the sale apparently, but I am told to do this, it is a little more complicated than just making a request for the court to abandon the property.

Does anyone have a heads up or useful tips for me before I get started.

Dan Walker
Walker Realty
SLC UT

Licensed Real Estate Agent

Albuquerque, NM

May 19, 2010

Dan-

I would encourage you to meet with the Seller's BK attorney and have him or her explain the process. It's more complicated than just having the Court approve the sale. The listing agreement and your commission structure would have to be approved by the Court and all of the creditors in order just to get the house on the market.

Best of luck!

Melissa Threet
Associate Broker/Realtor
Certified Negotiation Expert, e-Pro

Keller Williams Realty
Albuquerque, NM
cell/direct: (505) 463-8814
office: (505) 271-8200
fax: (505) 212-0336
email:
MelissaSellsABQ@aol.com
web: www.MelissaSellsABQ.com

Licensed Real Estate Agent

Ontario, CA

May 20, 2010

Dan, as not to appear to be giving legal advice. I was told by an attorney that if a seller filed Chapter 13 Bk then you with the seller's attorney, present your file to the trustee who, after determining that there is no asset because the property value is below the mortgage debt, he will provide a letter for the seller to move forward with the short sale. I also know this as, when I worked in loss mitigation, I handled short sales where I was in contact with the bk trustees who did allow the seller to complete a short sale, Again this is what I was told

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