There are times that a Fort Lauderdalebankruptcy attorney may probably heard about a few Chapter 7 trustees
(specifically in Fort Lauderdale Division) threaten to sell the homes of their
debtors who did not claim the homestead exemption, even though the home was “underwater”
(no equity). Many bankruptcy lawyers believe there is no need to claim the
homestead exemption if there is no equity in the property. The bankruptcy court
said that a trustee is required to abandon a homestead property if there is no
equity above what is owed to safeguard creditors. However, the court recognized
that a trustee can sell an underwater property in particular instances:
1. If
the trustee can find a buyer to buy the property for a price in excess of the mortgage
indebtedness. Not so common these days but possible.
2. If
the mortgage holder agrees to a “short sale” for the advantage to the
bankruptcy estate. This case is not common, especially if there is a second
mortgage holder involved who must also consent. But this probable.
3. If
the mortgage holder purchase a property from the bankruptcy trustee in order to
prevent the expense and time of doing it’s own foreclosure sale under state law
and agrees to pay the trustees some extra funds in excess of the sales price
that will benefit the bankruptcy estate.
To know more about this subject, you have to
consult a reliable Fort Lauderdale bankruptcy attorney now.
Winston I. Cuenant, Esq.,
is a highly talented French
speaking attorney Miami who can
extend his helping hands to guide towards a successful legal battle. He can
handle case in real estate, civil litigation, filing for bankruptcy and more.
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