In recent years, I have had several listings where the seller was either in bankruptcy or on the verge of bankruptcy due to some personal misfortune. If you are a seller in bankruptcy or on the verge of bankruptcy or if you are a realtor representing someone who is, you will find the following article by Cathy Moran, a bankruptcy attorney, invaluable. Cathy assisted me through several such escrows and her help was priceless.
One of the most valuable lessons I learned was to make sure that you question a seller thoroughly about all monies owed so that at the end of the day, you know that at the close of escrow there will be sufficient proceeds to pay off any liens or other obligations.
