CH 7 BK> Short Sale = deficiency liability?
08-30-2012 07:32 PM
I'm caught between a rock and a hard place!!!
I have a rental property that was IIB/discharged. I tried to sell it to a relative post BK however the appraisal came 25k short of the loan balance. (130k balance; 105k appraised).
Deal went dead.
Now I want to do a SS and I recently consulted a CDPE in the area. He stated that in order to do the SS, I would have to have the mortgage lien "removed" from the BK estate. Hence once removed I, the seller would open the doors for the $ deficiency if the property were sold SS.
Is this true? I have reached out to my BK attorney for clarification and he has not yet responded. I really need to sell. Renter/relative has been paying mortgage since inception.. and are continuing to pay today.
Another obstacle - Arms Length Transaction rule. Renter who wants to buys is a relative.
Anyone experienced something like this or know of someone? Appreciate all suggestions and advices!