Filing Bankruptcy & Selling your Home?

Below is today's opinion from Annie Fitzsimmons, the attorney who answers questions for the Washington Association of REALTORS® Legal Hotline.  If you or someone you know is facing a hardship with their property, please talk to an expert to determine the best way to proceed forward. For additional questions or information, please contact Jen at (206) 293-1005 or send me an email to jen@jenhudsonhomes.com.

Question:

Property is listed and the owner just filed for bankruptcy. Can listing agents continue to list the property and try to find a buyer?

Answer:

When a bankruptcy case is filed, ALL property comes under the immediate control of the appointed trustee. What happens to the further disposition of that property depends on a number of things.

First, if there is equity in the listed real property, i.e., meaning that there is enough to pay all recorded mortgages or liens in full, costs of sale and the debtor's homestead exemption amount, then the trustee will likely assert control over the real property. The trustee literally steps into the shoes of the debtor and has sole discretion to sell the property and handle its marketing. The trustee can choose to retain the current listing agent or appoint one of trustee's own choosing....

...Hotline Attorney Annie Fitzsimmons writes the Legal Hotline Question and Answer of the Week. The Legal Hotline lawyer does not represent Washington Association of REALTORS® members or their clients and customers.

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Thought this was interesting & want to continue reading? The rest of this article can be found at http://jenhudsonhomes.com/blog/archives/933. If you would like to learn more about real estate in general, visit my website at www.jenhudsonhomes.com.

Jen Hudson, GRI

Office: (360) 652-1200

Cell: (206) 293-1005

jen@jenhudsonhomes.com

Realtor with RE/MAX Signature