Bankruptcy?
Hello all, wondering if i could get some advice on where to take things from where im currently stuck. Trying to pick up my first preforclosure deal. The owner is out of state and just wants to get some of his equity out before he loses his home. Here are the numbers. FMV =120k, arrears=2k, cost to evict tenent=1k, taxes=2k, homeowners assoc.=2k, repairs 5k, outstanding 1st 57k. He's willing to take 20k and walk away. Planning on doing a sub 2, getting tenent evicted (he's month to month and 2 months behind on his rent!) Problem is i pulled a title report just to cover my bases and here's what i saw "(borrower name), a single man, subject to proceedings pending in the bankruptcy court where a petition for relief was filed."
So i call this guy up to ask him why he didn't inform me about the bankruptcy and he says "bankruptcy??? what bankruptcy? I've never filed for b/k." What could be going on here? It's quite possible that he could be trying to pull a fast one, but at this point im curious to find out if he's telling the truth or not. Where do i go from here??? Who do i contact. Do i go where the petition for reilief was filed and see what the deal is. The guy sounded genuinely concerned that there was a bankruptcy on his record that he wasn't aware of. Anybody ever run into this? What a deal to start on. Thanks in advance, i always get sound advice from this forum and this site. VERY much appreciated.
jairo :-?
A while back I posted on the forum asking how to find if someone is in bankruptcy and was given this information, but forgot who provided it for me.
http://pacer.psc.uscourts.gov or call the PACER Service Center at (800) 676-6856 or (210) 301-6440.
It seems good and I've found the information I was after.
Use caution!
After you get registered use the QUERY option and then enter the persons name. When I first started I was in the REPORTS option and browsed for over an hour, just using the arrow keys I believe. They charge me .07 for each record I looked at and it added up to about $40. The information I really wanted and found in the Query option has only cost me about $5.
Hope this helps.
Good luck.
jairo,
If your 120K FMV is actually ARV I would say you are about $15K too high on his equity position. You need to get him closer to taking $5K.
Have you taken into consideration your closing costs, holding costs, insurance costs, mistakes, etc. when you penciled this deal?
This deal seems worth going after but I think a little negotiation is in order if you can clear up the question of the BK. Good Luck.
Dave
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