top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Short sale after bankruptcy? Will I hurt myself?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Short sale after bankruptcy? Will I hurt myself?

    Hi.
    Here is my situation. In last November I got discharged from chapter 7. Did not reaffirm any of the debts (1st, 2nd, consumer). But on the statement of intentions I said I will keep the house. I stopped paying the 2nd mortgage about a year ago. Just dropped the first...
    I will be moving out of the house in less than 3 months. Did not received any tax papers related with the bankruptcy, so on my taxes I will be acting like I never had any bankruptcy, etc.
    But now a friend of mine would like to buy the house. Well, I called the short sale department, and after telling them about the bankruptcy, they said that they not deal with short sale after bankruptcy, and that I must call the bankruptcy department. I call the bankruptcy department, and they told me to do a short sale, but NOT to mention to the short sale department that I was discharged from bankruptcy. But in the short sale department they are trying to prove that I am in hardship, and I am NOT in any hardship anymore!
    Also, would potential short sale mess up my taxes?
    I know that I personally would not benefit from any short sale. I am trying to do this for my friend. But is it even possible, or worth it, and would it result in bad consequences for me?

    Thanks

    #2
    Most all banks are going to require that any short sale must be an arms length transaction. This means no friends, relatives, etc. If they allowed short sales to a family and friends it would just open the door to potential short sale fraud. Don't get your hopes up for pulling this off.
    Filed Chapter 7: 06/09/09
    341 Meeting: 07/16/09
    Discharged: 09/21/09
    Case Closed: 09/25/09

    Comment


      #3
      Be careful with short sales.. there is a possibility that if you don't get the lender to completely release you from the debt specifically taking a settlement discharging you from the debt through the short sale, they can come back and get you for a deficiency balance.. You must be fully released.. also, check on taxes, I don't think a mortgage short sale or settlement can be considered a gift of income like credit card settlements, if it did, you would have to pay income taxes on the amount gifted to you by the lender..

      Comment

      bottom Ad Widget

      Collapse
      Working...
      X