Now we are at the pivotal issue for me. i am in the middle of a short sale in which the lender had agreed to accept $72,000 from the buyer. This was halted when i filed chapter 7 ( the negotiator failed to request a trustee sale postponement).
A: Actually, no. A Chapter 7 stays any attempts to collect a debt against you. The lender cannot continue to negotiate without obtaining relief from the bankruptcy stay, or your executing a reaffirmation
My file was closed as an active bankruptcy. However they have agreed to complete the short sale under chapter 13 in which they will pay the 2nd TD per Federal Banking short sale guidelines. Question. How long can I expect the chapter 13 to protect me until the short sale is complete. The process typically takes 3 to 6 months to close escrow with the clearance from the lender.
A: If you have a 60 month plan, and your plan includes the 2nd TD, then you would be protected for 60 months, assuming that the lender does not come back to court with a change in circumstances (I won't speculate as to what that would be) as grounds for obtaining relief from the automatic stay
That said, I'm wondering why you care about a short sale (or a Chapter 13), since your Chapter 7 will relieve you of any further obligation for the loan, and whether foreclosure or short sale, the outcome will be identical with respect to your credit report, your living arrangements and your financial circumstances and liability.
In the end, you will have to vacate the property, your credit score will be approximately the same, due to the bankruptcy, and you will have no financial liability for the unpaid loan balances. So, why not just let the Chapter 7 go forward, stop negotiating with the bank and move on with your life.
Seems a pretty obvious answer to me.
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