You might not think that working with homeowners in bankruptcy is a good idea, but – in fact – bankruptcy can save your deal. On this episode of The Most Dwanderful Real Estate Podcast Ever, Dwan spells out the bankruptcy timeline and explains what it looks like to work with homeowners through that process. It is not for the faint of heart, but some homeowners who are determined to stay in their home and stay on top of the bankruptcy paperwork have found ways to live in their home for free for more than 2 years! While you are not an attorney and you don’t want to be one, you can learn enough about bankruptcy to advise your homeowners along the way.
Time Stamped Show Notes
- 1:17 – Thanks for all of your support. If you have learned anything from the podcast, share it with a friend.
- 3:07 – Dwan checks in with you.
- 4:39 – Dwan talks about recent improvements to her backdrop and asks for your help to name her giraffe and cow.
- 6:15 – Dwan reviews the season so far and recommends that you watch this episode of the podcast to get the full effect of the bankruptcy timeline.
- 7:46 – This week the topic is how bankruptcy can save your deal. Many people reach out to real estate investors just a few days before their foreclosure sale because they are in denial that the bank will actually take their house.
- 9:40 – Keep in mind when working with a homeowner going through bankruptcy that attorneys do not like for you to “practice law”, so your role is to guide and remind homeowners of the timeline while not actually doing any of the paperwork for them. Not many homeowners have the wherewithal to endure the bankruptcy process because it can be very stressful. Banks never know who is going to file bankruptcy, which is in your favor.
- 13:39 – Dwan gives a sample bankruptcy timeline to demonstrate how the process can very easily allow the homeowners to stay in their home for 2 years or more without ever having to go to court or make any payments. It can become almost an unending cycle of filing chapter 13 bankruptcy, requesting an extension, getting put on a payment plan, being released from bankruptcy to sell their house, and then filing bankruptcy again.
- 21:24 – Some homeowners extend the process even more by adding an attorney to the mix who requests an extension to redo the paperwork that the homeowners filed. Dwan knows of one set of homeowners who have been taking advantage of this process for 7 years now, which isn’t necessarily a good thing, but it just proves that it can be done.
- 23:57 – The bank would much rather have to hire a foreclosure attorney ($7500) than a bankruptcy attorney ($25000).
- 27:30 – Your assignment is to visually sketch out the bankruptcy timeline that Dwan described so you can see it.
- 28:09 – Remember that you can’t do any work for your homeowners going through the bankruptcy process, but you should help them stay on top of their paperwork deadlines.
- 29:39 – If you aren’t already a member of the Dwanderful.com site, it is never too late to join for just $1 and get access to the Wednesday morning LIVE Coaching Calls, the Chat Box, and the Document Library!
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