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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.