Selling Your Home in Chapter 13 Bankruptcy

The Denver real estate market is hotter than it has been in years.  As a result, we have recently seen some property owners who have filed Chapter 13 who would like to cash in and sell their house.  Can you do it while you are in an active Chapter 13?  The answer is YES~ as long as you get permission from the court.

The first step is to ask your bankruptcy attorney to file a motion.  To file this motion, your case worker will need a copy of the sales contract.  Before you sign any contract for the sale of your house, make sure there is a provision that clearly states that the sale is subject to approval by the bankruptcy judge.  Please keep in mind that after the motion is filed, your bankruptcy attorney will apply to the court for additional attorneys fees for drafting and presenting the motion.

The trustee is going to want to know the relationship of the buyer to the debtor.  The reason for this is to prevent the person in bankruptcy to possibly give away a  valuable asset to a relative.  The transaction must be for fair market value priced.

A hearing will have to set with the bankruptcy court in order to give creditors time to object to the sale if they so choose.

As a general rule: Do not set a closing date until the bankruptcy court has granted approval.

You have a choice to sell your home to a cash buyer, such as LVN Real Estate or utilizing a real estate agent.

When selling to cash buyers, homeowners may skip many of the typical selling steps in order to close much faster.

This selling-house-for-cash process begins with a homeowner deciding to liquidate. Rather than  contacting a real estate agent, they call their preferred cash buyer. The cash buyer assumes the role of the realtor and assesses the property, sometimes with walk throughs, sometimes using comparable homes in the area to determine a fair market value cash offer.

The next step is, they present the cash offer to the homeowners, the sellers can choose to close at their earliest convenience. No waiting for a financial approval, buyers backing out, staging your home and waiting.

Selling your Denver house to LVN Real Estate will mean you have control.


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