Sample Script for discussing Bankruptcy Short Sales


Following are key talking points when discussing bankruptcy cases with Debtor’s attorneys. In this example, we have the following information on hand.

  • Address: 123 Main Street, Anywhere, Florida 33324
  • Debtor: John Smith
  • Case #: 21-12345
  • Debtor’s counsel: Mary Jones
  • 341 Date: 10/25/2019
  • Is the property listed on Realtor.com? No
  • The trustee filed a no distribution report (NDR) on 06/20/2020 (they aren’t selling the asset and have abandoned (removed) the property from the estate
  • The bank obtained relief from the automatic stay on 07/15/2020. This means the home is subject to being foreclosed upon.
  • The foreclosure case has not been re-opened but could be at any time.
  • The lender is Bank of America and BK Global received a request from them to see if the debtor would be willing to sell pre-foreclosure


Some thoughts about this file

We have more information on hand about the details of this case as it was a file that BK Global already researched.

Case number 21-12345 indicates that this case was opened in 2019. The property is not currently listed for sale.

We know that Bank of America is eager to see this property sell pre-foreclosure. They send us their files to engage in listings as we have proven that their financial recovery averages 28% better in these transactions than a foreclosure.

The fact that they have received relief from the automatic stay indicates that the property is subject to a foreclosure sale at any time. The debtor should be getting anxious about their short-term future.

Good afternoon, Attorney Jones, please
What is this in reference to?

I’m calling about John Smith bankruptcy case 19-12345
This is Mary Jones.

Good afternoon Mary, my name is Patrick Butler with BK Global. I wanted to chat with you about the John Smith bankruptcy case 20-12345
Yes?

I sell bankruptcy assets in this area and noticed this case from 2019 and wanted to see if your client has considered selling the property at John Smith bankruptcy case 20-12345?

There’s a great deal of demand today and limited inventory for buyers as I am sure you are aware.

We noticed that the Trustee on the case filed a no distribution report so the property is now subject to foreclosure.

I haven’t really spoken to them about it. We just represented them in the filing of the bankruptcy.

Got it. The reason for my call is that the secured creditor/bank has relief from stay on this file and would prefer to have the home sell pre-foreclosure. Lenders have seen the benefit of selling properties pre-foreclosure in particular where bankruptcy was involved.

They are more than happy to pay a legal fee to you for enabling us to initiate a sale and if your client still occupies the property, a relocation incentive to them.
That’s interesting. How much of a legal fee?

It varies based upon the economics of the transaction but $1,500 is not uncommon and perhaps more for higher-value assets. The relocation incentive for your client is typical $3,000. Again, all are subject to economics.

Let me speak with my client and see if they are interested in moving forward.
The call is really that simple. Outcomes to the call may vary depending upon the attorney and the status of the case. Some issues that may come up include:

  • I have no interest in what you are offering
    If this is the case, you can take the next step and reach out to the debtor directly. If you find their phone number online, feel free to call them. If you are in the area, a door knock is always good.
  • My client is going through a loan modification
    Sometimes the debtor actually has a solution with the bank in which case you may want to bend the attorney’s ear for another minute and mention that this is something you can work with them on any future cases.
  • My client received a discharge of debt already
    That may be true but it doesn’t remove the lien from the property. The debtor is still subject to foreclosure even though they are no longer personally responsible for the debt.
  • I only represented the client to file their bankruptcy
    Which is another reason to reach out to the debtor directly.
  • Do you have anything you can send me that I can share with my client?
    As Realtors we should always have our marketing hats on. Attached to this script is a sample flyer that hits the highlights of the offer to the debtor. You can create your own branded one-sheets to forward to attorneys to satisfy their requests.
  • What is your experience in bankruptcy sales?
    You are more than welcome to introduce our partnership. Our company website has ample information and videos that provide additional information.


There are some additional benefits to their client for selling pre-foreclosure, namely the avoid a foreclosure which impacts their credit for seven years. Some employers cannot have someone with a foreclosure on their credit such as banking and financial services companies.


If in fact, the trustee has plans on selling the property, the attorney would know this as well. That would typically occur closer to the 341-hearing date as they tend to abandon the asset pretty quickly after that date.


Remember, the key here is a brief conversation to respect the attorney’s time. Make sure they know there’s money in it for them and their client.


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