Bankruptcy, Foreclosure and Selling Your Los Angeles House

(April 22, 2012)

signing documentsI wrote an email (excerpt below) to a very nice lady whom I met with last week.

She needs to sell her Los Angeles house because she is in foreclosure and bankruptcy. She has 2 offers to choose from (one of which is mine). I felt compelled to let her know what has to happen, regardless of which offer she chooses. As a real estate investor, it is important to help a seller in any way that I can.

Dear Jan,

I wanted to outline some important points for you, as the next few weeks are critical for the successful sale of your property. You have worked very hard to avoid having the property go to auction, so hopefully, this will help you.

1. You need to have an official discharge of your bankruptcy before you sell your Los Angeles house.

2. Your projected Trustee Sale date is in 3 1/2 weeks.

3. Getting a loan pay-off when a property is in bankruptcy and also foreclosure can be VERY difficult and take quite a bit of time.

4. Timing is everything. Make sure the person buying your Los Angeles house takes this very seriously and moves quickly. Also, make sure that this person is experienced in handling situations like this.
  • It is VERY important that they know the law and the procedures.

5. If, for any reason, you decide not to sell your house, you have 5 business days to cancel after signing the agreement, to cancel, when you are in foreclosure. It's California law.

6. Verify that your buyer is the real deal. You need to see "Proof of Funds" and a non-refundable deposit. The buyer should give escrow a "Non-Refundable" deposit that is yours should the buyer not close on time.

Start an Offer
Jennifer Shenbaum

Written by Jennifer Shenbaum

Jennifer Shenbaum is a real estate investor based in Southern California. She is a veteran of the housing market crash of 2007. Best of all, she offers free remodeling ideas to all who ask.

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