If I filed bankruptcy and then my house was appointed a trustee from the bankruptcy court, if it’s sold will we get the money from the sale?
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If I filed bankruptcy and then my house was appointed a trustee from the bankruptcy court, if it’s sold will we get the money from the sale?
I filed bankruptcy and then my house was appointed a trustee from the bankruptcy court. A real estate agent sold the house on a short sale and said we will get money on the sale. We had no exemptions.
Asked on September 4, 2012 under Bankruptcy Law, Michigan
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
By definition of a "short sale" under the statutes of all state sin this country, when a piece of property is sold as such, the price paid is less than the amount of the loan owed on the property. As such, the home is "under water" from a real estate standpoint.
Whe such happens, there are no net proceeds from the sale of a short sale home to be given to the seller. The only time a seller in a short sale receives any money in the sale of the property is when the purchase contract or any short sale addendum signed by the lender states that the seller is to receive some semblance of money from escrow when the transaction closes.
I suggest that you consult with the real estate agent that stated you would get some money from the sale and ask where it is.
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