Posted by Elizabeth on February 13, 2004 at 10:29:35:
Johnny, didn’t I answer this question for you just yesterday?
Unsecured creditors in short sale - Posted by Johnny
Posted by Johnny on February 13, 2004 at 09:01:47:
I am attempting a short sale on a house where the sellers owe more than the house is worth. There is a major sewage problem with the house and the city is all over it, so the bank is motivated to avoid taking title.
However, the sellers had two cars repo’d in 1999 and now collection agencies are about to seek 2 deficiency judgements against the sellers for the total amount of $18k.
My question is - what happens to my deal with the bank if these deficiency judgements attach to the house?
Also, is there anyway to make sure that these judgements don’t attach - like having the sellers deed their house to me?
The first case with one of the collection agencies is scheduled for 2/18/04 and at that point the collection agency will be granted a judgement which could be attached to the house.
Any comments are appreciated.
Re: Unsecured creditors in short sale - Posted by jafon2k
Posted by jafon2k on February 14, 2004 at 19:50:11:
Have them deed the property over to a land trust under their control until you are ready to close.