Banruptcy And Subject To
How can I do this deal? All help appreciated. I have a house that is worth ARV 199,000. The balance on the mortgage is 144,000. Thereis a second for 5,000. The owner wants 5,000 for his equity. The owner is in chapter 13 abnd has been for 7 months. He is missing his payments. The 144,000 includes the arrears. Is there any way to do this deal "subject to"? What would I need to do? The attorneys have told me that the only way is to make this a straight purchase. I think that financing and closing costs would really diminish the profit. The ideal think is to do a subject to everyone wins here. Any Advice????
If O is still in 13, then the Trustee is in charge, and if he likes your offer, for whatever reasons, he has the authority, probably, to move ahead and convey the RE to you.
So whose lawyers are you talking to?
I think I'd send a certified letter to the Trustee making my offer, to which the Trustee will respond.
No reason YOU have to deal with Bk's lawyers, whereas, if YOU were a lawyer in the deal, you'd have to deal with the other lawyers. And you could not then deal directly with any of the parties.
[addsig]
John
Thanks for the reply. I have been speaking to 2 Bankruptcy Attys. One for the O and mine. The is agreement that the court would most likely not approve a subject to deal. Do you think that the trustee could get a subject to deal through? If the sale is approved then notice would be sent to the bank and wouldn't that trigger the DOS clause?
I'm still pretty green, but from reading stuff on the forums here, wouldn't this be a good candidate for a short sale?
Or, if not a true short sale, a discounted price from the lender?