Legal Question in Real Estate Law in California

Re: Short Sale for property in Ch 11.

If the property is listed in the bankruptcy, you will need approval of the BK court for a sale, unless the lender has already abtained a release of any stay.

Also, check to see if there is a pre-payment penalty on the loan, and that is the reason for having to go with a short sale. If it is one of the reasons, there is a way to avoid the penalty, and posibly keep you from spending a lot of money on the purchase or new financing.

Re: Short Sale for property in Ch 11.

You mustget approval from the banrktupcy court and may have to file a motion. Please contact our office for an appointment and review of your documents as well as the bankrtupcy file.

714 363 0220

Re: Short Sale for property in Ch 11.

After a bankruptcy filing, lenders can get relief from the automatic stay to resume the foreclosure process. There are also rules in the civil code about making offers to people in forecosure that include a right of rescission. This is a complex area and you should speak with an attorney.

Re: Short Sale for property in Ch 11.

If you can afford to buy a piece of real property you can afford a good real estate attorney/bankruptcy attorney who can help you through the process. I can understand why you haven't sought council already to check time limitations, potential financing problems, the possible need for expertise in a real estate broker or other expert to aid you in this sophisticated transaction. I am in the San Francisco Bay Area and if you wish to consult with me 925 -- 945 -- 6000.

Re: Short Sale for property in Ch 11.

This matter is very complicated. Need to know status of owners bankruptcy. If bankruptcy in in process, the Trustee will need to be approached to allow the sale, etc., etc. Retain counsel to make sure this is looked at well and you are protected.