A Maryland Blog For Title Insurance, Settlement Company News And Information. A place For Consumers, Lenders, Real Estate Professionals And Others To Find, Share Or Read About News And Topics Related To The Title Insurance And Property Settlement Industry. Understanding Quotes, Coverage, Closings, Recording, Property Tax, Discounts, Third Party Fees, Services, Transfers, Risks, Policies, TRID, Closing Disclosure, Loan Estimates And More.
Monday, April 11, 2011
Short Sale & Bankruptcy
If you are seeking approval from your lender for the sale of your property for less than you owe on the loan (short sale), and also considering bankruptcy, be sure to consider all of the permutations before you file anything. It is highly recommended that you seek the advice of bankruptcy counsel AND your lender and realtor. The filing of a bankruptcy petition prior to the closing of a short sale may have unintended and adverse consequences for your short sale approval. Many bankruptcy attorneys will give you good advice that might not take into consideration your pending short sale unless you have informed them of it. Furthermore, if your realtor and lender are unaware that you are considering bankruptcy, they may make recommendations that would be different if they knew you were filing for bankruptcy. The filing of a bankruptcy and short selling a property are interrelated and if not properly planned can cause difficulty in achieving either objective. So, consult your attorney, your realtor and your lender before doing anything.