Make sure all is disclosed in short sales

April 20th, 2010
We have so many short sales and forclosures in our inventory of homes it is very critical that the buyer be sure before an offer is submitted that the home is available for sale. Recently we ran into a situation where the seller had included his 2nd mortgage in his bankrupsy and because he thought it was wiped out by the bankrupsy failed to disclose that it was still a lien on the home. When a 2nd has been filed in a bankrupsy and the bankrupsy hasn't been discharged you need an order from the court in order for the home to be sold. Unless all of these matters have been addressed the lenght of time from contract to closing can be subject to many delays, and many times the bankrupt seller doesn't want to pay to file a request for the court to allow the sale. Each bank and case is different.....Be Careful!

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