I feel bad for YOU!

Wow - That's a terrible situation.  Does the seller intend to stay in the house as long as possible?   If they do declare BK - the property will likely become bank owned, I guess my only advice is to stick with the property, and see if you can retain the listing when the bank takes it over.

Why would the attorney have you do that? It is not in the best interest of the client and intenat is not an action

Paul:  The attorney said that if the Seller did not make the Lender aware of their intentions it is considered Lender Fraud and when they would get to bankruptcy court it is possible it would not be discharged because they never intended to pay.  I haven't given up yet it will be interesting.

Thank you everyone for comments & support.

Jonelle: The house is vacant, the seller lives in Arizona.  I will try to keep the listing even though Erwin Home Equity is very hard to deal with.  Thanks for the comment.

I don't know about your state but if the sale is done  prior to the filing, what differance does it make?  In Georgia if the house sells on the steps the junior lein is wiped out
Rick

Well good grief!  Was the closing not going to happen before the 90 days?  It seems like with the approvals all you had to do is close and then who cares what the seller does.  Ummm... I think the Attorney was looking to throw a kink in it for some reason....The lender should have not even cared... Strange.... Maybe it works differently in your State but it would not have mattered here in Texas....

Amber,

This is a tough one! Many Realtors tell me shorth sales are almost too risky to handle becasue no one really know what is going to happen at a shorty until you are-or almost-at the closing table.

This is a tough way to learn.

 OW!

Hang in there,

Steve

http://obeoman.blogspot.com