Steve Shiller
Everybody Wins – Out of State Credit Bid BK


BK Global sells another house for a Florida Trustee

This past week we closed a sale for a Chapter 7 Bankruptcy Trustee in Florida and a top-five Loan Servicer. The Trustee and BK Global worked with the creditor on a credit bid for the debtor’s home in Illinois that was over-encumbered.

TL;DR

  • BK Global facilitated another consented property sale in bankruptcy on an over-encumbered property.
  • The debtor avoided a foreclosure.
  • By selling in bankruptcy, the creditor prevented foreclosure and realized a loss recovery savings of over $48,000.
  • The bankruptcy estate received a nearly $17,000 carve-out

The Debtor

The debtor was over a year delinquent and facing foreclosure on this property. The creditor prevented a lengthy foreclosure by agreeing to a credit bid in bankruptcy with the Trustee to obtain a faster outcome that created a better situation for all parties.

The Benefit to the Lender

The benefit to the lender, in this case, is that the credit bid enables them to sell to a 3rd party shortening their disposition timeline, and if no acceptable offers were received, the lender would get the asset back free and clear of all liens — WITHOUT having to foreclose!

The Benefit to the Bankruptcy Estate

This house was sold to a 3rd party, with an offer above the creditor’s minimum reserve price. The debtor avoided foreclosure and the secured creditor was able to preserve the value of their asset.



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