Misconception Explainer Video for Debtor's Counsel

Here is the link to the video

Video Text:

Hey there, thanks for taking a minute to review this case with us.

BK Global is the nation’s leader in selling residential properties in bankruptcy and helping debtors navigate the oftentimes complex issues regarding making the right decisions for their families.

We work with attorneys, bankruptcy trustees, and the banks to assist with analyzing, and selling properties that would otherwise end up in foreclosure. Our specialty is the short sale in bankruptcy or the “Consented Sale”.

The outcome for the banks on a pre-foreclosure sale, or Consented sale averages 28% better than going through a foreclosure.

By working together, we can get a legal fee for you paid by the bank, and if your client still resides in the home, relocation assistance for them.

It is somewhat alarming that many homeowners are not clear on the possible outcomes of decisions they make during and after their bankruptcy has concluded.

We have provided the following observations in case your client may fall into one of the categories.

Misconception 1

I surrendered my home in bankruptcy. I have no more obligations, right?

Not really. Statistically, if there’s no equity in the home the trustee usually will abandon the house from the estate and file a no distribution report. That, coupled with the fact that the lender has probably obtained relief from the automatic stay puts the debtor at great risk of foreclosure.

Surrendering the home in bankruptcy means nothing if it is not sold by the trustee.

Misconception 2

My debt was discharged though. I don’t have to do anything more.

Even though the homeowner’s debt is discharged in bankruptcy, and the homeowner is no longer personally responsible for the debt, there is still a lien on the property and the only recourse for the bank is to foreclose on the home.

A foreclosure even after bankruptcy will still appear on your credit report as a derogatory entry for seven years.

That doesn’t have to be the case though. BK Global works with local real estate agents to help homeowners with making smart decisions when it comes to their home.

Misconception 3

I indicated I was going to retain my home on my statement of intentions.

Initially, that may be a way to buy some time in the home while sorting out one’s life. Homeowners who can no longer afford their housing payments must apply for an qualify for a loan modification in order to keep their home.

There are a number of benefits to a short sale with BK Global managing the process. This sale is known as a “Consented Sale”

• All lien holders consent to the terms of the sale
• BK Global manages the entire process in partnership with your local agent
• A short sale has far less impact on your credit than a foreclosure enabling you to be bankable in less time
• If you still reside in the property the bank will typically offer money for relocation assistance
• You can stay in the home until the closing which can be months down the road!

If you would like to learn more about how this works we’re here to help.

If you are a real estate agent or broker and have not yet completed the Bankruptcy Specialist Certification Course, click here to get started.