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Bankruptcy in Arizona? Lawsuit in Arizona? Negotiated Deal in Arizona?

By Joseph McDaniel, Esq.

So this guy had a house teed up for a short sale, and there was this big second that wasn't going to get paid.

So the guy, who has only one big debt, says to the second position lender: "How about if I kick you some dough, because if you sue me for the second, there's only one solution, and that's The B Word. And I'd just as soon do the right thing, and not have to file a bankruptcy."

So the Arizona Lender says, we won't approve anything, and we won't take a penny less than the entire amount. And we'll sue you and our lawyers will rack up big legal fees. Either you pay us the entire big second mortgage amount or we're happy to see you file a bankruptcy!"

Lemmie ask you something; does it sound to you as though the lender has the best interests of its shareholders in mind? Or its lawyers?

Inquiring minds want to know.

And maybe it was just a personality conflict with the lawyers (this wasn't one of mine), which sometimes does happen. Or perhaps the lender just didn't believe that this guy would file a bankruptcy.

Sometimes the law firm has to see the schedules, AND get a check with a restrictive endorsement, before they see the light; and sometimes, not even then.

Oh, well; it's what makes my practice interesting. No two cases are ever exactly alike.

Like snowflakes.

 

Full post as published by Arizona Bankruptcy Attorney Blog on February 01, 2011 (boomark / email).