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Expert: - 8/23/2010


Question
we put an offer on a home. The sellers are in default on the property. They
filed for bankruptcy back on 7/12. They want to short sale us the home. They
accepted our offer but countered us with an addendum. In it, it states:
"cost if any to remove the property from BK petition in order to allow short
sale will be borne by the buyer"
"In order to affect a sale the buyer must petition at buyers cost to have the
property removed from the BK proceeding

What does this mean?? and do you have any idea what the cost of this will be?
we live in long beach, ca


Answer
The way it's worded, I'm not sure what it means, but in order to sell the property, they need to obtain bankruptcy court approval for the sale and, if it is a Chapter 7 case, they need permission from the Trustee since it is the Trustee who owns the property unless and until the case is closed.   Without knowing which chapter was filed and other relevant facts of the bankruptcy case, I can't really advise further.

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Mark J. Markus- California Bankruptcy Attorney

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Mark J. Markus is a Los Angeles bankruptcy attorney who has practiced exclusively bankruptcy law in California since 1991 and is rated A+ by the Better Business Bureau and is AV-rated by Martindale-Hubbell. He represents debtors, creditors, and Trustees in Chapter 7, Chapter 11, and Chapter 13 of the bankruptcy code throughout California.

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Visit our California bankruptcy webpage at http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint).
The Markus webpage also contains more information on

  • Which Chapter to File,
  • business bankruptcy,
  • chapter 7 bankruptcy,
  • chapter 11 bankruptcy,
  • chapter 13 bankruptcy,
  • Do You Need a Lawyer to File Bankruptcy?
  • Frequently Asked Bankruptcy Questions

    Also visit our Los Angeles bankruptcy blog for interesting articles and much more.



    Organizations
    Central District Consumer Bankruptcy Attorneys Association (CDCBAA) Los Angeles County Bar Association (LACBA) Commercial Law & Bankruptcy Section of the Los Angeles County Bar Association Financial Lawyers Conference (FLC) National Association of Consumer Bankruptcy Attorneys (NACBA) Los Angeles Bankruptcy Forum (LABF) American Bankruptcy Institute (ABI) San Fernando Valley Bar Association (SFVBA)

    Publications
    Central District Consumer Bankruptcy Attorneys Association Newsletter September 2007 (Vol. 1, Issue 2)

    Education/Credentials
    J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here

    Awards and Honors
    AV Rated by Martindale-Hubbell (http://www.martindale.com) A+ Rated by Better Business Bureau

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