Bankrupt Property Owners
Can anyone tell me if it is better to purchase property from someone that has filed/or intends to file a Chapter 7 or Chapter 13 bankruptcy. In other words, of the 2 types which might be the most motivated.
Are there any problems associated with a bankruptcy that has an impact on the purchase transaction either before, during or after?
Is there a recommended approach to "test the waters" to find out if the troubled party is interested in selling? (sample letter, anyone??)
Are there any major additional considerations that need to be taken into account when assessing a deal of this type?
Thanks for your help.
Chapter 13 people still think theres hope so Chapter 7 people will definitely be more open to a sale. Since it is in a chapter you more than likely will need to have a lawyer present it to the courts or have his lawyer do so.
If it is in Chapter 7 I would make the offer to the judge through an attorney rather than try and negotiate, Personally I would start at 20 cents on the dollar and see what he wants you to raise it to.
If it is in Chapter 13 you will have to deal with the current owner and negotiations would have to be started.
Good Luck,
Kyle