Bankruptcy Foreclosure?
I have spoken with a home owner whose house is in foreclosure. She informed me that she is filing bankruptcy. I am not clear how filing bankruptcy will effect the foreclosure. Can someone please give me some insight?
Bankruptcy will stop/postpone foreclosure.
charismatic1,
Something called "automatic stay" kicks in as soon as BK is filed. Automatic stay does not cure the foreclosure problem, but it has an effect on temporarly stopping it.
Hope this helps.
The owner of the house is not able to afford the monthly bankruptcy fee and her current mortgage. She has agreed to let me purchase the home however, there are a couple of variables that I must consider.
The payoff amount for the house is 86,000. This amount includes $30,000 of penalties. The owner wants to rent the home. Realistically I can not pay the 86,000 without charging her more rent then her current mortgage. I am trying to figure a way to work a deal that would allow the owner to stay. Does anyone have any advice?
I have tried contacting the loss mitigation department of the mortgage company hoping to negotiate a short sale, but they claim they do not have her file because it is being handled in the bankruptcy department. I spoke with the bankruptcy department and they were not helpful at all.
Can someone please give me some suggestions?
What is the the FMV of this property?
How long does the owner want to rent back?
If the owner already filed bankruptcy, they might not be able to sell the property to you without permission of bk trustee. Is the owner plannig to fallout of bankruptcy? [ Edited by reinatalie on Date 11/11/2004 ]
The fmv is about $125K
The owner would rent indefinetly.
I spoke with the owners attorney and he stated that he would have to get permission from the bankruptcy trust and then a real estate agent would have to list the house.