Frequently Asked Questions by Chapter 7 Trustees
What is RealAssist™?
RealAssist™ is a new service providing streamlined bankruptcy real estate sales to Chapter 7 bankruptcy trustees. RealAssist™ offers an end-to-end process connecting trustees and buyers on both short- and equity- sales of real estate properties in the bankruptcy process, helping trustees maximize the value of each real estate asset with minimal effort.
Why should I consider using the RealAssist program?
RealAssist™ offers you the opportunity to get more asset cases by sending you notifications of servicer pre-approved properties that are eligible to go through the streamlined short sale process, thus saving the debtor and servicer the hassle of going through the painful and costly foreclosure process while offering unsecured creditors additional monies from the guaranteed carve-out. It’s a win-win for everyone involved, including you.
How can I opt into the RealAssist™ program?
To opt into the RealAssist™ program, you simply need to visit the RealAssist™ web page and submit the form that is on the top of page.
Details about RealAssist™
How do I know if there is a property available?
Once you have opted into the RealAssist™ program, BMS will send you notifications of eligible properties that you can choose to list on Auction.com. The properties that you will be notified about are typically underwater properties – ones that have been pre-approved by the servicer to go through a short sale process.
How long will the RealAssist™ process take?
The average time for a short sale to be completed within the RealAssist™ program on average is about 6 months. This is from the time you sign and submit a contract, to the close and funding of the sale.
Is the RealAssist™ program UST-approved?
By policy, the UST does not approve or endorse any specific program. Property sold under the RealAssist program is treated like any other asset of an estate sold by a trustee.
The sale of real properties under the original program through Auction.com has been successfully expanded to many states, including:
BMS has enhanced the original Auction.com program to add in efficiencies to streamline the process for Chapter 7 trustees and their staff. This program is offered to trustees nationwide and BMS is happy to discuss the details of the program with any UST office if they have questions.
Can I use my own real estate agent?
Yes. You can utilize any agent of your choice. If you prefer, Auction.com can provide you with a recommendation for a real estate agent that is already familiar with selling properties through an online auction.
What costs are involved in the RealAssist™ process?
Estates must pay a filing fee for the Motion to Sell, which can be deferred until the carve-out funds have been received by the estate. All other costs are covered by RealAssist.
Who is responsible for the costs in the RealAssist™ process?
BMS and Auction.com take on the additional costs of the process, including property insurance, leaving you with a hassle-free experience.
Will I be provided assistance with motions and orders for sale; motions and orders employing the real estate agent?
Yes. BMS provides you with tailored templates of the appropriate motions and orders that you would need to file with the court.
What is the closing process?
The buyer may choose their own agent or Auction.com can assist with locating a closing agent familiar with properties sold through the online auction process. Auction.com will work with the closing agents and manage the closing process.
Is there a benefit to the estate?
The bankruptcy estate receives a guaranteed carve-out equivalent to 5% of the winning bid or $7,500 (whichever is greater), regardless of whether the property sells at auction or not.
How do I get paid?
Once the closing has occurred, the carve-out amount will be sent to you in the name of the bankruptcy estate. Then, you determine how the carve-out will be allocated.
If I have additional questions about RealAssist™, who should I contact?
If you have any other questions, please send an email to the RealAssist team: RealAssist@BMSAdvantage.com, which will be directed to our RealAssist™ Subject Matter Experts, Renee Laws and Cory Clemmons.
If I have a specific question after a short sale request has been submitted, who should I contact?
If you have a specific question after submitting a short sale request, please email to the RealAssist team: RealAssist@BMSAdvantage.com. RealAssist™ Subject Matter Experts (Renee Laws or Cory Clemmons) will respond accordingly.
Let’s Get Real.
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