There are times that a Fort Lauderdale bankruptcy attorney may probably heard about a few Chapter 7 trustees (specifically in Fort Lauderdale Division) threaten to sell the homes of their debtors who did not claim the homestead exemption, even though the home was “underwater” (no equity). Many bankruptcy lawyers believe there is no need to claim the homestead exemption if there is no equity in the property. The bankruptcy court said that a trustee is required to abandon a homestead property if there is no equity above what is owed to safeguard creditors. However, the court recognized that a trustee can sell an underwater property in particular instances: If the trustee can find a buyer to buy the property for a price in excess of the mortgage indebtedness. Not so common these days but possible.If the mortgage holder agrees to a “short sale” for the advantage to the bankruptcy estate. This case is not common, especially if there is a second mortgage holder involved who must also consent. But this probable.If the mortgage holder purchase a property from the bankruptcy trustee in order to prevent the expense and time of doing it's own foreclosure sale under state law and agrees to pay the trustees some extra funds in excess of the sales price that will benefit the bankruptcy estate. To know more about this subject, you have to consult a reliable Fort Lauderdale bankruptcy attorney now.
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