short sale and bankruptcy

N

ninja88

New member
Can someone with legal background shed light on this. if the current home owner has more than 1 loan and filed for bankruptcy where the property is not included. Is this even possible? and why would he do this?  He is now attempting to do a short sale on this property. Do all the loans outside of the 1st loan automatically get wiped out? or only if the bankruptcy filing is successful? thanks.
 
I cannot understand what you are asking exactly here, but yes a person can have multiple loans on a home, file Chapter 7 I believe, and keep the home.
 
I'm not an expert but I think this is where Homestead exemptions come into play. In CA we don't have the kind of broad protection that other states do (thinking of OJ Simpson's house in Florida, for example) but there is a certain limit here. You can read about it here:http://en.wikipedia.org/wiki/Homestead_exemption.I don't know what you mean if the property is not included. When you file, you list all of your assets including the home.
 
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