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Jie Zhao
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Seller filed bankruptcy 17days before closing

Jie Zhao
Posted Apr 14 2018, 06:58

I am the buyer. Under Contract on 03/10/2018. Closing date is 04/17/2018. Normal sell. Seller was pre foreclosure starting November 2017. Seller Has equity in the house. Not a short sell. Yesterday my lender needs to send CD out to me and suddenly find out the seller filed bankruptcy on 03/30/2018. Seller and his agent didn’t disclose the bankruptcy until my lender found out yesterday afternoon. Now, the seller worked with his bankruptcy attorney to released the house yesterday afternoon. Can we still close on the house? Is the seller’s agent action legal by concealing the bankruptcy information? My cost of earnest money, inspection, appraisal and lender fee are all in the line messed up by seller filing for bankruptcy. In the state of Colorado. 

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