heartglass

I need help , Trustee has order to sell my property

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I had a lawyer last year and this year , and your comment is what chased me away from here . My case is full of holes the trustee is lying and filed yesterday with the bk courts that she has made a deal with my bank for short sale , it seems according to the bank lawyers no such agreement was made .

Also the property is half owned by my ex partner which the trustee has not filed a partition . So please I do not need spanking for the past , I am moving forward ....

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Please be patient.  This is long and a second post will follow. . .

 

“Here is the update over a year later.  (The) trustee put (the bankruptcy estate) property up for sale a year ago. . .  then she pulled it off . . . This year she (hired legal counsel) and re-listed (the) property (in May). . .  Yesterday I get word some one from California made an offer. . . they say its supposed to close in Oct. . . I have paid my mortgage down by 11000 since filing in 2013. . .”

 

An attorney may have advised you not to make payments as you were just making it easier for the Trustee by reducing the debt on bankruptcy estate property.  However, during that time, you were allowed to remain in possession and use bankruptcy estate property therefore, you were paying for the privilege - no different than paying rent.

 

I had a lawyer last year and this year.  My case is full of holes the trustee is lying and filed yesterday with the bk  courts that she has made a deal with my bank for short sale. . . According to the bank lawyers no such agreement was made .

 

 

Your Trustee is not “lying” and you need to understand (some of which I stated in earlier posts):

 

1.  You do not control the property.  The Trustee does - subject, of course, to the rights of the lien holder;

 

2.  The Trustee has the right to market and attempt to sell the property, even if it is a short sale;

 

3.  Did you speak to the bank’s lawyer?  Chances are the bank’s lawyer was not fully advised of any attempt to negotiate a short sale.  Happens all the time.  Right hand does not know what the left hand is doing;

 

4. You stated that the Trustee filed something with the court yesterday.  What she filed was a “Motion/Application to Sell Property Free and Clear of Liens”.  Read it.  It should give you all of the details of the transaction including the amount that will be available to the unsecured creditors (including payment to the taxing agencies for the non-dischargeable priority taxes you owe.)

 

“The property is half owned by my ex partner.  The trustee has not filed a partition.”

 

 

Read my prior posts.  Not sure why you think she has to partition the property.  As I said, she can sell the interest of the bk estate and the interest of the co-owner.  Further, as I said before, if this is a short-sale, the co-owner gets nothing since there was nothing to give.

 

“The trustee listed (the) building at $149,000. Bank valued it at $100,000 .  (I got a CMA three years ago and the value was)between 70,000 and 98,000.  Isn't the bk picture supposed to be at the time of original filing?”

 

 

Since you gave up all rights to the property by filing a Chapter 7, you also gave up any interest in the appreciation in value.  It sells for whatever the market will bring when it is sold.

 

As I said before, the Trustee can attempt to sell it “short”.  The lender still has to agree.  A Hearing on the Application to Sell should be set by the Court.  Creditors will be given a window of time in which to object to the sale.  If the lender does not agree to the terms of the sale (not being paid all that is owed) then it will file an objection.

 

“Please do not beat me for screwing up I need guidance”

 

 

 

My intent is not to beat you up.  It is what it is.  Because this response is so long, I am going to do a separate post pertaining to “my guidance”.  I do have an idea but it may be too late.

 

 

Des.

 

 

 

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My “guidance” for what it is worth. . .

 

 

1.  Read the 363 Motion to sell the property very carefully.  Someplace in that Motion it should indicate the amount the Trustee thinks will be available to the creditors.  It may be a “carve out” from the proceeds of the short-sale - something either the lender is willing to give up or something extra the buyer is willing to pay. 

 

 

2. Once you have an idea of what goes to the creditors, ask yourself. . . “is there any way I can come up with slightly more?”  Can you borrow from a friend or family member - what about the co-owner? 

 

 

3. If you can come up with something more than what is being offered by the sale application you could approach the Trustee’s attorney and propose a settlement so that the sale motion is withdrawn. 

 

 

You want to create a “controversy” so that the Trustee does not need to seek “higher and better offers” as is required in a sale setting.  You want to set this up as what is called "a 9019 compromise settlement" Use that phraseology as it is something the Trustee and her attny will understand.

 

The way you “create a controversy”  is to make a stink about trampling the rights of the co-owner (the co-owner may have to argue this).  It is a bogus argument but it may be enough to give the Trustee the ability to pull the sale application and settle with you.  Of course, if you cannot fund this “settlement” my suggestion has no merit.

 

At the moment, this is all I have.  If I think of something else I will post it.

 

Please keep us posted.

 

Des.

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thanks ..

I hope some one out there reads this and gets it , to hire a lawyer from the start...I listened to some people on here and thought I could do it , as I was duped by one of those online boiler plate file it yourself companies....it does not work....

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thanks ..

I hope some one out there reads this and gets it , to hire a lawyer from the start...I listened to some people on here and thought I could do it , as I was duped by one of those online boiler plate file it yourself companies....it does not work....

 

+1,

 

and I will also add:  if you own property you could lose, don't file a Chapter 7 bankruptcy.  You are turning over your property to the trustee.  Find other ways of dealing with debt and creditors.

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