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.
- 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 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 secured creditor ended up with a loss recovery margin of over $48,000 on this asset over a foreclosure.
The Benefit to the Bankruptcy Estate
The Trustee brought almost $17,000 into the estate for the benefit of unsecured creditors.