Bankruptcy is a complex issue. When bankruptcy is filed, property owned by the debtor becomes a part of the Bankruptcy Estate. The course of action and requirements will depend on the current status of the case and the type of Bankruptcy Case filed, either Chapter 7, 11 or 13.
The following requirements for insuring a sale must be satisfied: 1) the bankruptcy must be closed, 2) the bankruptcy must be dismissed, not discharged, 3) the bankruptcy court file shows the property is exempt (residence only), 4) the property is abandoned by the court or the trustee, or 5) a court order authorizes the sale, and the 14-day appeal period has ended.
Two critical items of note are that a Discharge of Debtor does not release the property from bankruptcy and that a Motion for Relief from the Automatic Stay only allows the foreclosing lender to proceed with foreclosure; it does not allow the bankrupt borrower to move forward with the sale of the property.
With highly complex issues like these, choosing the right title company has never been more important. That’s exactly why the expertise of the Sales Executives and Title Officers at Ticor Title will prove critical in your next real estate transaction. The knowledge that the Ticor Team proudly delivers to our clients is yet another quality that sets us well above and beyond the rest.
For more information on the topic of Bankruptcy Sales and for information about Ticor’s title and escrow services, contact your Ticor Sales Executive or our Premier Customer Service Team.