A friend owns a primary residence since 2004 and making timely mortgage payments. Then purchases a second property for $500,000 in 2006 and later couldn't afford the mortgage payments. Second home was a short sale in 2008 for $395,000. Are short sales required to be reported in BK? I wouldn't think so since it's not an asset or no income was made due to a short sale.
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If it's a chapter 7 ALL debt MOST be included no if's and or buts......Chapter 7 07/30/2008
341 09/17/2008
Discharge 11/21/2008 -
You friend wants to include the short sale anyway - all property transfers need to be included (sometimes as far back as 10 yrs). Also, if the lender that accepted the short sale decides to go after the deficiency in any way at a future date then the deficiency is discharged in the BK. That way if the deficiency somehow morphs into zombie debt - you have taken care of it permanetly in the BK.Filed CH 7 9/30/2008
Discharged Jan 5, 2009! Closed Jan 18, 2009
I am not an attorney. None of my advice is legal advice in any way..Comment
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