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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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OK, I have filed a Chapter 7..I have a meeting of the creditors

Resolved Question:

OK, I have filed a Chapter 7..I have a meeting of the creditors in a 3 weeks. I own a apartment building that is overleveraged and was in a process of short selling.

Its been a week since my filing, the bank that holds the mortgage on the apartment building has contacted my Realtor and said that they have a approval for the short sale now! And they want me to have my lawyer some kind of form so they can go ahead have the short sale move forward..

..Is there any benefit for me to do this? I got a BK and the loan was going to get discharged anyway.. Could I ask for some cash to make this happen for the bank?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 7 years ago.
Hi huhouse,
Now that the bank cannot come after you for the mortgage, they are more willing to cooperate with a short sale. Since they cannot get any money from you, they are more willing to take less from someone else.
However, if you included the apartment building in the bankruptcy filing, the bank cannot do anything with it until they submit a motion to lift the automatic stay so they can proceed with the sale. They probably want an indication from your attorney that you will not be opposing this motion (so they can proceed with the sale).
This is the type of motion that is rarely, if ever, opposed, and there is really no benefit to do so (oppose it), especially since there are usually additional legal fees involved when attempting to oppose it.
For a number of reasons, I think it is very unlikely that the bank will offer you any money to not impede the sale, and any money that might be given to you would probably have to be turned over to the bankruptcy trustee.
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