Question by Danielle: If somebody files bankruptcy how long will it take for the house to go up for sale?
My friend’s uncle owned the home she lived in and he filed for bankruptcy so now her family has to move. She said they are probably going to be out of the house by September 1st but she wants to know whats going to happen to the house. Is the bank selling it?
Best answer:
Answer by loanmasterone
Going into bankruptcy normally protect individuals from creditors while and make arrangements to pay the creditors off at a reduced monthly payment. This happens when one file a chapter 11.
To completely liquidate a debt the person would have to file a chapter 7 thus this individual has decided to give up all and sell what ever assets he has to satisfy as many of his creditors debts as can be after all is sold.
The bank foreclosure trustee will determine when your uncles friend has to be out of the property as this is collateral for a loan he obtained to purchase the house that will be turned over to the lender that made the loan to him
The bank will eventually sell the house once all the legal documents are signed deeded the property to the bank.
The bank use local real estate brokers to act on their behalf to market and sell the house. Transferring the property to the bank, getting the property in a position to market the house and assigning it to a real estate broker take a while so trying to determine when a property will go to sale is difficult.
I hope this has been of some benefit to you, good luck.
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