Just a word of warning for anyone who has a SS seller paying on a chapter 13 BK.
I have been working for 2 months alone on getting the second lien holder (CitiFinancial) to accept a $3,000 payoff as allocated strictly by Freddie Mac. Freddie Mac would not move off their guidelines and despite constant calling in the hope of reaching someone there with a brain, was always directed back to the servicer who happens to be GMAC. There was nothing I could do other than start working with Citi to get them to let go of their side of the bone and accept a $3,000 payoff on a $61,000 balance. In the end my powers of persuasion proved worth the sweat and they agreed, giving me a reason to celebrate on getting both shorts approved and ready to close...my celebrations were short lived.
I found out 2 days later that there were complications because the title binder pointed to a chapter 13, which I knew of at listing time, but did not realize it could derail any progress I would make later down the line. The buyer attorney raised red flags and pretty much prevented the deal from closing because now, we have to go through the bankruptcy court to get final approval to sell the house.
It looks like I am going to have to go back to GMAC and ask for an extension...Its looking doubtful but I am still hopeful things will work out, The buyer has grown tired of waiting due to numerous stops, starts and turns and I can't really blame him.
Darren De Wilde