Tag Archives: title company

Selling Your Home “For Sale by Owner”

Cherry Creek Title Services logo in black and whiteCherry Creek Title has specialized in “For Sale by Owner” transactions for over 20 years. We have a well experienced staff including 2 staff attorneys to lend their expertise for you during every step of your closing so you can feel content with your choice to sell your home without a real estate agent. We also offer many articles containing helpful tips and resources specifically for “FSBO” transactions.

We make it a point to know our clients and customers, and our flexible approach is designed to meet each individual’s needs to the best of our ability. Clients value our common sense approach to underwriting and our dedication to accommodating everyone’s closing needs, including out-of-office and after-hours signings. we build lifelong relationships with our clients and look forward to assisting you in your next transaction.

Selling you home for sale by owner can be overwhelming! You can find may helpful tips to assist you in selling your home by owner at our page titled  FSBO Tips and Resources.

Preparing your Residential Contract to Buy and Sell Real Estate is the first step on your way to the closing table.  You can download for free the purchase contract and other relevant forms  here:  Colorado Division of Real Estate Contracts and Forms.

Need help drafting your purchase contract? Check out this comprehensive step-by-step guide to draft your purchase contract written by our  in-house attorney and President of Cherry Creek Title Services, Inc.,  Michael Selinfreund titled Updated for 2019! Tips on Drafting the Colorado Contract to buy and Sell Real Estate.

at any time you have any questions, concerns or just want to know general information about your transaction, one of our staff members will be happy to assist you.  You can visit our office anytime between 9:00 am and 5:00 pm Monday thru Friday located at 3600 South Yosemite Street, Suite 510, Denver, Colorado 80237.  You can call any one of our knowledgeable staff members at 303.333.9737 or email mail@cherrycreektitle.com. Once you have completed your purchase contract, we will review it free of charge to insure it has been correctly executed.

The most frequently asked question is “How much are your closing costs?” Many title companies charge a premium to close your transaction and make cumbersome and costly requirements such as attorney opinion letters for you contract simply because you have no real estate agent involved. Cherry Creek Title will provide you with both competitive pricing and VIP service. We charge the same low closing fee for your FSBO sale as we do for a real estate agent – assisted transaction. We do not offer a bundled purchase closing fee – we will only charge you for the services provided to you. Below is a list of our most commonly charged closing fees. Designation of which party pays the closing costs can be negotiated in the purchase contract. for general closing costs go to our page titled Basic Rates

You can request a more comprehensive quote on title insurance and fees by filing out the form located at the bottom of our FSBO page.

You can feel confident selling your home “For Sale by Owner” when you use Cherry Creek Title Sevices, ryour “FSBO” specialist!

 

Don’t Be Spoofed!

You have read the warnings: “Don’t wire funds in response to an email without using call-back procedures!” Always call the party who appears to have sent the email for confirmation using a “safe” or know phone number. What happens if you receive a phone call from your intended funds recipient, asking that you wire funds? You check the number on your caller ID and see that it matches the know number you have.

Are you good to wire funds? NO!

Fraudsters and thieves are utilizing prepaid “burner” phones and applications that will “spoof” the caller ID of any phone number the caller chooses-even valid phone numbers of known businesses.

This fraud scheme is rampant – our industry is not the only target. These spoofing apps advertise themselves as a tool to “prank your friends” but  are used by criminals posing as entities such as taxing authorities or bank personnel in order to defraud companies and consumers into sending money or providing confidential information.

How does this affect the title insurance companies? Fraudsters have learned that responsible escrow officers have begun using call back procedures to validate and verify emails regarding wiring of funds. They are using spoof caller ID in order to circumvent security procedures.

DON’T GET SPOOFED! An incoming phone call never takes the place of an outgoing confirmatory call before wiring funds.

 

Reprinted with permission of the American Land Title Association.
First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates.
AMD: 05/2017

CHERRY CREEK TITLE SERVICES IS AN INDEPENDENT POLICY-ISSUING AGENT OF FIRST AMERICAN TITLE INSURANCE COMPANY

Tips to Protect Your Information During Your Real Estate Transaction

 

Real Estate Transactions are a Prime Target for Fraudsters!

When you buy a home you will be required to submit personal information to your lender and/or escrow agent. At Cherry Creek Title Services, we go above and beyond the industry standards to secure your personal information during and after your transaction. Here are some important tips to remember:

Always carefully examine the email address from which you receive updates on your transaction from your escrow officer to ensure it is correct. If an email seems suspicious, contact your escrow officer immediately.

Call your escrow officer  immediately if you receive an email requesting to change the wiring instructions for your transactions. DO NOT use the contact information provided in the email.
Carefully review your personal information on your transaction paperwork to ensure it is correct.Communicate or confirm any changes to the transaction with your escrow officer over the phone or in person.

Do not provide information about yourself or your transaction to any unknown or unnecessary parties.

Contact your escrow officer  if you suspect your email address is being improperly used or if you do not receive funds in a timely fashion.

Reprinted with permission of the American Land Title Association.
First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates.
AMD: 05/2017

CHERRY CREEK TITLE SERVICES IS AN INDEPENDENT POLICY-ISSUING AGENT OF FIRST AMERICAN TITLE INSURANCE COMPANY

Protecting Your Purchase Funds and Sale Proceeds from Wire Fraud in Real Estate Transactions

 By Michael Selinfreund, Esq.,

President/General Counsel of Cherry Creek Title Services, Inc.,

Agent for Commonwealth/Fidelity & First American

Recently, the number of incidents of wire theft in real estate transactions has risen dramatically. Wires of buyer’s funds to close and seller’s proceeds are being hijacked all the time.

Here’s a typical scenario. The fraudsters hack into the real estate agent’s email and monitor the agent’s emails watching pending transactions. Occasionally, they hack into the title company’s emails; however, it’s less common since it’s far easier to identify real estate agents that use public emails rather than private domain email accounts; lack sufficient firewalls; and are easier targets of malware than title companies. However, title companies also fall victim to these scams. All it takes is the fraudster posing as the real estate agent and instructing the closer to change the wiring information for the seller or the closer opening an attachment with malware.

Sometimes the fraudster steals the buyer’s funds to close by hijacking the wire intended for the title company. The fraudster sends an email to the buyer (often that appears to originate from the title company) modifying the routing and account information for the buyer’s wire to the fraudster’s account. Since the fraudster knows when the transaction is closing by monitoring the email account they hacked, they know when to send such an email. Many prefer to target the seller’s proceeds and wait until after the closing and then re-direct the seller proceeds immediately after the closing by posing as either the seller or the real estate agent for the seller.

These emails look legitimate since they either spoof the email address of the sender (looks like it came from a legitimate address) or they send the email from an account that is virtually identical to the sender’s by adding one character to the legitimate sender’s email and it goes unnoticed. That’s very easy to do when the sender uses public email accounts. That’s a common way title companies get duped. The closer receives an email from the fraudster that looks virtually identical to that of the agent, and instructs the agent to change the wiring instructions for the seller’s proceeds. Some fraudsters go as far as sending a fake email from the intended recipient’s bank acknowledging receipt of the wire and that it was being credited to the defrauded party’s account. This gives the title company and defrauded party a false sense of security, and the goal is to delay them a day or two to confirm whether the wire was properly received. This gives the fraudster additional time to withdraw the stolen funds or wire them to another account from which they’re withdrawn before the funds can be frozen where they were initially diverted.

So, if you’re the buyer, here’s how to protect yourself. One way is to fund your deal with a cashier’s check instead of a wire. If the title company has a wire only policy, tell them your concern about wire theft and offer to scan and send a copy of your cashier’s check in advance so the title company can call the issuing bank to verify its authenticity. That along with telling them you’ll close elsewhere if they will only accept a wire will likely change their position. If you cannot move the closing or choose to proceed and fund with a wire, make sure you call the title company closer at a phone number you independently verify belongs to them, and verify the wiring instructions directly with the closer. Many title commitments contain the wiring information where you send your funds necessary to close so be very wary if the closer gives you different information than what’s in the commitment. No matter what emails or correspondence you receive ever attempting to modify that wiring information, you need to absolutely presume it’s an attempt to defraud you and divert your money to a criminal. You’ll of course at a minimum want to call a phone number you procure independently (not off a potential fraudulent correspondence) and speak to the closer. I’ve never once seen the wiring instructions change in the middle of a transaction that wasn’t fraudulent so you need to be on high alert.

Protecting yourself as the seller from your proceeds wire being hijacked also requires a little diligence. You’ll want to insist that the title company signs a written document at the closing that confirms the correct wiring information for you and provides that the wiring information cannot be changed under any circumstances. Or you could choose to add a sentence that they can only be changed if the seller (you) returns to the title company; speaks directly to the closer that knows what you look like; you prove your identity again; and you sign a modified written document changing the wire destination. I’d prepare that document myself; send it in advance to the title company closer insisting that it be signed at the closing so it comes as no surprise, and if they refused to sign it, I’d go elsewhere. You have every right to make the party handling your money follow your strict instructions regarding the wiring instructions.

I also recommend notifying the title company prior to the closing that you want your wire sent immediately following the closing while you are still present, or make the title company get you a cashier’s check. Aggressive attorneys virtually 100% of the time successfully make the title company initiate the seller proceeds wire right after the closing, and the attorney waits in the lobby until a wire confirmation is received that the bank sends virtually immediately after a wire is sent. A thorough attorney verifies on the confirmation that it went to the proper account and takes a copy with them. A common issue that arises with getting a cashier’s check in lieu of a wire is that your bank may put a hold on it. If you’re turning around and purchasing another property or need immediate access to your funds for any reason, a cashier’s check might not work for you.

The sad reality is that once wires are stolen, they are rarely recovered. It’s a devastating loss to the victims, and their recourse at that point is to sue the real estate agent and/or title company for negligence. Not only is litigation extremely expensive, you are forced to incur that cost right after losing a huge amount of money. And, getting a judgment means nothing unless you can collect. The parties responsible may lack the money to pay the judgment or may file for bankruptcy protection. It’s far wiser to take appropriate precautions so you are never a victim of wire theft.

*This article is intended for educational purposes only and not as legal advice*

An Overview of Colorado Mechanics Liens Laws Part 2 of 2

By Michael Selinfreund, Esq.

President/General Counsel of Cherry Creek Title Services, Inc.

Agent for Commonwealth/Fidelity and First American

All mechanics liens relate back to the time of the commencement of work under the contract between the owner and the first contractor, or, if said contract is not in writing, then such liens shall relate back to and take effect as of the time of the commencement of the work upon the structure or improvement, and shall have priority over any lien or encumbrance subsequently intervening, or which may have been created prior thereto but which was not then recorded and of which the lienor did not have actual notice.  Often the first work is commenced by the very first party with lien rights, typically the engineers and/or surveyors, and then all other claimants get the benefit of that date.

C.R.S. § 38-22-108 specifies liens will be satisfied in the following order: first to the liens of all those who were laborers or mechanics working by the day or piece, but without furnishing material therefor, either as principal or subcontractors; second to all other subcontractors and of all materialmen whose claims are either entirely or principally for laborers, materials, machinery, or other fixtures, furnished either as principal contractors or subcontractors; and last to all other principal contractors.

Let’s turn now to the perspective of the property owner burdened or potentially burdened by a mechanic’s lien.   It pays to be vigilant and know which subcontractors are being engaged by the contractor and where the materials are being obtained.  This way, the property owner can require and obtain lien waivers from all such sub-contractors and materialmen at the time of making any payments. C.R.S. 38-22-119 limits the effect of any such lien waiver as being solely between the parties to the contract.  So, if there is still an unpaid subcontractor or materialman who worked under the contractor being paid, they would still be able to file a lien in the event the contractor fails to pay them.  C.R.S. 38-22-119 (2) provides that an agreement to waive lien rights shall contain a statement, by the person waiving lien rights, providing in substance that all debts owed to any third party by the person waiving the lien rights and relating to the goods or services covered by the waiver of lien rights have been paid or will be timely paid.  However, many such waivers have been fraudulently executed with unpaid subcontractors and materialmen lurking behind the scenes.

When faced with a filed mechanics lien, the first thing to do is verify the claimant complied properly with the ten-day intent provision (discussed in Part 1 of this article); is claiming the proper amount owed (see C.R.S. 38-22-128); and filed timely per C.R.S. 38-22-109.  A large percentage of such liens are filled-out and filed by the unpaid contractors, and many have fatal errors.

The next thing to consider is whether the lien has expired.  C.R.S. 38-22-109(8) states that such liens do not remain effective longer than one year from the filing of the lien unless within 30 days after each annual anniversary of the filing of the lien statement, an affidavit is filed stating the property improvements have not been completed.  That’s why many title companies require 13 months to have passed before insuring over a recorded Mechanic’s Lien in Colorado.

STATEMENT OF LIEN DOCUMENT

VIDEO PRESENTATION ON Real Estate Lien Priority Issues in Colorado

C.R.S. 38-22-110 provides that no lien shall hold the property longer than six months after the last work or labor is performed, or laborers or materials are furnished, or after the completion of the building, structure, or other improvement, or the completion of the alteration, addition to, or repair thereof, unless an action has been commenced within that time to enforce the same, and unless also a notice (typically a Lis Pendens) stating that such action has been commenced is filed for record within that time in the office of the county clerk and recorder of the county where the property is located.  Where there is no notice of commencement of the action filed, there can be no cloud upon the plaintiffs’ title.  See Schlosky v. Mobile Premix Concrete, Inc., 656 P.2d 1321 (Colo. App. 1982).  So, the lien claimant is often time barred from filing suit as most do not have the money to pursue lien foreclosure actions in District Court and six months goes by quickly.  The majority of liens filed are not foreclosed, rather, the lien claimant is hopeful that their lien stands in the way of a sale or refinance transaction thereby forcing the property owner to pay them.  However, even in those circumstances, the property owner can bond around such liens pursuant to C.R.S. § 38-22-131.

One statute that is often helpful for the burdened property owner is C.R.S. § 38-22-125; the Bona fide purchaser statute.  It provides that no lien, excepting those claimed by laborers or mechanics as defined in section 38-22-108(1) (a), filed for record more than two months after completion of the building, improvement, or structure shall encumber the interest of any bona fide purchaser for value of real property, the principal improvement upon which is a single- or double-family dwelling, unless said purchaser at the time of conveyance has actual knowledge that the amounts due and secured by such lien have not been paid, or unless such lien statement has been recorded prior to conveyance, or unless a notice as provided in section 38-22-109(10) has been filed within one month subsequent to completion or prior to conveyance, whichever is later.

When applicable, C.R.S. 38-22-113 is extremely beneficial to the property owner.  It provides that it shall be an affirmative defense in any action to foreclose a mechanics lien that the owner or some person acting on the owner’s behalf has paid an amount sufficient to satisfy the contractual and legal obligations of the owner, including the initial purchase price or contract amount plus any additions or change orders, to the principal contractor or any subcontractor for the purpose of payment to the subcontractors or suppliers of laborers or materials or services to the job, when the property is an existing single-family dwelling unit; the property is a residence constructed by the owner or under a contract entered into by the owner prior to its occupancy as his primary residence; or the property is a single-family, owner-occupied dwelling unit, including a residence constructed and sold for occupancy as a primary residence.

One final important statute to be aware of is the Contractor Trust Fund Statute.  C.R.S. 38-22-127.   In the event the property owner pays the contractor directly or via loan disbursements from the construction lender, and the contractor fails to pay subcontractors and/or materialmen, an express trust relationship is created for all such payments received, and C.R.S. 38-22-127(5) defines the failure to pay the subcontractors or materialmen as theft under C.R.S. 18-4-401.   An individual in complete control of the finances and financial decisions of an entity that violates the statute is personally liable for such violation.  See Alexander Co. v. Packard, 754 P.2d 780 (Colo. App. 1988).  Further, debts arising from violating the Contractor Trust Fund Statute are not discharged by filing bankruptcy.

Finally, Mechanics’ liens may also be defeated by the filing of bankruptcy proceedings by either the property owner or the general contractor.  This is a complex subject and beyond the scope of this article.

An Overview of Colorado Mechanic’s Lien Law Part 1 of 2 – VIEW NOW

 

First Time Home Buyer Facts

 

Buying a home for the first time can be overwhelming. Our knowledgeable professionals can answer your title and closing questions and we are committed to making the home-buying experience a satisfying one for you. To help you begin your journey, here are some answers to a few of the questions that first-time home buyers may ask as they begin their quest to purchase their slice of the American dream.

 

 

Why should I buy instead of rent?
A home is an investment. When you rent, you write your monthly check and that money is gone forever. When you own your home, you can deduct the cost of your mortgage loan interest from your federal income taxes and usually from your state taxes. You can also deduct the property taxes you pay as a homeowner. In addition, the value of your home may go up over the years, building equity for you.

How do I know if I am ready to buy a home?

  • Do I have a steady source of income? Have I been employed on a regular basis for the last 2-3 years? Is my current income reliable?
  • Do I have a good record of paying my bills? Do I have few outstanding long-term debts, like car payments?
  • Do I have money saved for a down payment? Do I have the ability to pay a mortgage every month, plus additional costs?

If you can answer “yes” to these questions, you are probably ready to buy your own home.

What is title insurance and why do I need it?
An Owner’s Policy of title insurance protects the buyer against loss for title threats undiscovered at the time of closing and provides a defense in the event of claims against the title pursuant to the terms of the policy.

How much money will I need upfront to buy a home?
In general, you need enough money to cover three expenses: the earnest money (variable), down payment, and closing costs.
In addition to the mortgage payment, what other costs do I need to consider?
Utilities, property taxes, homeowners insurance, and maintenance costs are a few of the expenses to be considered. Additionally, there may be homeowner association or condo association dues.

How are pre-qualifying and pre-approval different?
Pre-qualification is an informal way to see how much you may be able to borrow. A pre-approval is the lender’s commitment to lend to you.

Should I use a real estate agent? How do I find a good one?
A good real estate professional can guide you through the entire process and make the experience much easier. All of the details involved in home buying, particularly the financial ones, can be mind-boggling. Start by asking your family and friends if they can recommend an agent. Look for an agent who listens well and The ideal agent knows the local area well and has resources and contacts to help you in your search

 

 

FSBO Tips! “For Sale by Owner” Basics -With Informative Video Presentation

By Michael Selinfreund, Esq.,
President/General Counsel of Cherry Creek Title Services, Inc.,
Agent for Commonwealth/Fidelity and First American

Selling by owner has gotten much easier in the digital age.   I’ve been helping “For Sale by Owner” (FSBO) sellers since 1992.  In those early years, the most effective marketing techniques were yard signs and classified ads in the newspaper.   Despite their limited marketing channels and lack of Multiple Listing Service (MLS) access, many people were successful in selling themselves.  I routinely closed 10-15 FSBO’s every month.  Now, people are able to post their properties online and include pictures and video of the inside and outside of their home.

Cherry Creek Title specializes in For Sale by Owner transactions!

CLICK TO VIEW “QUICK TIPS” VIDEO PRESENTATION

Besides whatever improvements, changes, clean-up or anything else you do to your property in anticipation of sale, here are some tips:

  1. Home ValuePrice your house properly. The easiest way to do that is to call one or more Realtors and have them give you a free comparative market analysis.  You may also want to check out zillow.com and their “Price This Home” feature to view sales information on nearby properties.  Many readers of this article are already receiving postcards with for sale and sold information from agents working their area so they have a good idea of their property’s general value in addition to the Realtors that work their area.  Since you may end up listing with an agent if you’re unsuccessful selling by owner, I’d select one or two that offered discounted commission rates and one that specialized in my neighborhood.  I might get better pricing information from the higher rate agent that works my neighborhood, but I’d still pick the discount agent I liked best if I couldn’t sell myself.  And of course I’d never pay any non-refundable fees nor any of the MLS fees or marketing costs.  I’d make sure I was getting MLS exposure, brochures to display, and a sign with all costs paid by the listing agent.  4% including the 2.8% co-op is no problem to find and sometimes even less.  Some will refund you everything but the co-op if/when you buy another home through them.  You can still tell the Realtor you want to use Cherry Creek Title Services as your title company.  Make sure to REQUEST A QUOTE FROM Cherry Creek Title Services so you can compare rates with any other title company.
  2. Go to the Colorado Division of Real Estate Site where you can download the Seller’s Property Disclosure for free. Fill it out and make multiple copies.  You may want to display copies of it alongside whatever sales sheet/brochure you have for prospects that view your property.  You’ll need it for when you receive a contract, and many offers expect the completed disclosure to be provided virtually immediately.
  3. Familiarize yourself with the other forms at the Division of Real Estate website beginning with the 2016 Contract to Buy and Sell (Residential). I’ve written an article regarding Tips in Preparing the 2016 Contract to Buy and Sell (Residential), and it’s posted on the Cherry Creek Title website.   If you need to provide a Lead Based Paint Disclosure Form and associated brochure (discussed in more detail in my article), you’ll want to be prepared to provide both.
  4. Marketing Your House For SaleOur experience of asking seller after seller where they found their buyers consistently reveals that the venerable yard sign and Zillow.com are all you need marketing wise. People drive the areas they desire to live in noticing yard signs, and neighbors also alert their friends.  Zillow is ubiquitous and in my opinion, the only website you need to advertise your property.  I believe that taking the time to look at other seller’s ads to get ideas for how you want to word yours is worth the time.  And taking comprehensive pictures of the exterior and every single room and bathroom in your home and uploading them to your Zillow ad is a very wise strategy.   You’re allowed a large number of quality pictures in your ad so take advantage of that opportunity.  Plan on uploading 20-25 photos.  If the option exists or becomes available where you can upload a video with a virtual tour, I certainly would.  Either way, any potential buyers that contact you will have effectively already seen your home so they’re likely very good prospects.
  5. Have the information on any mortgages you have on the property such as recent statements readily available. Once you find a buyer, this information will be necessary for the title company to order payoff information.  The same advice goes for your water, sewer, and any HOA statements, if applicable.
  6. Locate your original deed and title policy. Neither are mandatory, but both are helpful for identifying how you hold title and your legal description so you can properly prepare the contract.
  7. Pick the title company in advance. The title company is who will likely hold the earnest money deposit, and there is a blank in the standard Colorado Division of Real Estate contract wherein you put who will be holding the earnest money.  Shop around, but of course, I recommend Cherry Creek Title Services, Inc.  All earnest monies are held in an escrow account at no cost.  Cherry Creek Title’s closing and title fees are extremely competitive with no additional fees added for those selling by owner nor any requirement for an attorney opinion letter regarding the contract.  Cherry Creek Title has been in business since 1997 and has an A+ rating with the BBB.

This article and video presentation are intended for educational purposes only and not as legal advice.  To view more educational videos like on real estate and other related subjects visit the Cherry Creek Title Services Channel on You Tube.

CLICK FOR MORE "FSBO" ARTICLES AND RESOURCES

CLICK FOR MORE “FSBO” ARTICLES AND RESOURCES

Best of luck!

Selling a Home During a Chapter 13 Bankruptcy Plan Repayment Period

 

by Michael Selinfreund, President / General Counsel of Cherry Creek Title Services, Inc.

This article and video presentation is for educational purposes only and not intended as legal advice.  To view more educational videos on real estate and other related subjects visit us at the

Cherry Creek Title Services Channel on You Tube.

 

The Chapter 13 debtor needs to notify their attorney before doing anything including signing a listing agreement.  Permission to sell the home by the Bankruptcy Court is required, and debtor’s counsel will need to notify the Chapter 13 Trustee.  Depending on the jurisdiction, the Court may need to approve the listing agreement and require any contract be subject to Court approval.  As a listing agent, it is comforting to have the Bankruptcy Court approve your listing agreement, and be sure to insert a provision in the contract whereby the buyer acknowledges being made aware that the seller is in Chapter 13 and that the transaction is subject to Bankruptcy Court approval.  One thing to keep in mind is that Federal Rule of Bankruptcy Procedure 6003 precludes the Bankruptcy Court from signing an order authorizing any such sale within the first 21 days of the debtor filing for Chapter 13 protection.

 

House with for sale/bankruptcy sign in yard

CLICK HERE FOR VIDEO PRESENTATION ON SELLING OR REFINANCING YOUR HOME IN BANKRUPTCY

The sale of the Debtor’s residence changes their expenses which will likely lead to a change in the plan payments assuming the plan isn’t entirely paid off from the proceeds of the home.  Non-exempt proceeds (in excess of the Homestead exemption discussed in a previous posting by me) will likely go toward paying down/off the plan, and exempt proceeds will have restrictions as well since they will only remain exempt by the ultimate reinvestment in another residence.   The Motion to Sell supporting the Order allowing the sale will address the disposition of the proceeds and allow the Chapter 13 trustee to respond.   It will likely be important to provide the Court with a preliminary seller closing statement showing the expected net proceeds.  These are complex issues that vary in different Bankruptcy jurisdictions, but the common thread is for the debtor to involve their attorney as early as possible.

 

 

 

 

 

 

 

Can I Sell My Home After Filing Chapter 7 Bankruptcy Before I Receive My Final Discharge?

by Michael Selinfreund, President/General Counsel of Cherry Creek Title Services, Inc.

This article and video presentation is for educational purposes only and not intended as legal advice.  To view more educational videos on real estate and other related subjects visit us at the Cherry Creek Title Services Channel on You Tube

 

Yes.  However, it requires the cooperation and approval of the Trustee to release “abandon” the Property.   And, depending on the jurisdiction, it may still require a Motion to Abandon the Property and an Order authorizing sale from the Bankruptcy Court.  And predictably, is not a fast process.  Since a typical Chapter 7 (Straight Bankruptcy) case takes 90 days from filing to discharge, the wiser move is to just wait until the case is completed.   Pursuant to section 522 of the Bankruptcy code, the Trustee has control over the debtor’s estate from filing until discharge so the debtor should refrain from entering into any contracts of any sort (e.g. listing agreement; sales agreement) until after receiving their final discharge.

 

VIDEO PRESENTATION ON SELLING OR REFINANCING YOUR HOME IN BANKRUPTCY