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Bankruptcy and Short Sales

It’s been awhile since we’ve added a new post. We have been extremely busy helping people recover from their financial situations. Our calendars were swamped and we have some very happy clients that we are working with today. Although we’ve been busy, we have plenty of room to help more people.

Today, we would like to address the issue of how a bankruptcy can affect your short sale. Under bankruptcy protection, your foreclosure proceedings will be stopped to allow for time to short sell your home if that is your goal. Many people are interested in short selling their home due to the loss of value and equity. Instead of facing foreclosure, a real estate agent can help you negotiate with a bank and sell your home for less than the amount owed on the home. A bankruptcy should not affect this process whatsoever, but, ultimately, the bank can decide whether or not they will negotiate with you during a short sale. A bankruptcy may help you extend the amount of time you have to get a short sale approved and completed with a bank. A bank may ask for authorization to continue to communicate with the home owner during a bankruptcy because bankruptcy prevents creditors from communicating with debtors (the home owners) are under bankruptcy protection. In this situation, we will gladly respond with an authorization to allow the bank to communicate directly with you and your real estate agent to complete the short sale negotiations. There is no extra charge in communicating with your bank. We will only authorize communication with you if you instruct us to do so. Otherwise, anything and everything is confidential between Bankruptcy Law Pros and our clients.

Whether you are in a short sale negotiation or loan modification negotiation with your bank, we can still file your bankruptcy to rid your other debts that are threatening your future. Visit us at one of our locations in Riverside, Tustin or La Mirada by scheduling an appointment at 855 257-7671. We look forward to meeting with you.

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