Legal Question in Bankruptcy in New York

Foreclosure/Bankruptcy Disclosure by Realtor

Hi, My mom who is 61 has a Foreclosure sale date set for her home on 4/5/05. She has it for sale with a local Realtor and has decided to claim Chapter 7 to stay the proceedings so she can sell the house without a gun to her head to maximize what she leaves with. Does the realtor have to disclose that she is in foreclosure and/or bankruptcy until he has a firm buyer/contract? We don't want him telling everyone who inquires about the house her situation unless they are in contract. Please advise. Thanks.


Asked on 3/08/05, 9:27 am

2 Answers from Attorneys
Andrew Nitzberg Andrew Nitzberg & Associates

Re: Foreclosure/Bankruptcy Disclosure by Realtor

The best of luck in this difficult situation.

The broker does not need to say anything about any debts or CH7. It's complicated, but the house is now in the 'bankruptcy estate' and the trustee will have to sign off on any sale. It is do-able with the CH7 tool.

CH 13 might have been a better tool, but CH7 is simpler (more 'user-friendly') and your goals can be achieved with the CH7 tool. However, you might have to work faster under CH7 than you would have had to under CH13.

Keep that in mind if you feel any pressure to take a low-bid by the court or the creditors. We can transform the CH7 into a CH13 at no cost and get you more time to get a decent price for the house.

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Answered on 3/08/05, 12:59 pm
richard feldman richard d. feldman

Re: Foreclosure/Bankruptcy Disclosure by Realtor

The broker should disclose a foreclosure but doesn't have to disclose what he or she doesn't know Also a chapter 7 may not be the best choice

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Answered on 3/08/05, 9:48 am


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