How Does Bankruptcy Effect My Ability To Purchase?
I was contacted by a seller last week who was about 2 weeks from losing his home. I faxed him over all the necessary paperwork and scheduled an appt. to pick it up and look at house. My original exit strategy was a short sale. He basically fell off the face of earth for a week and I thought it was a lost deal. Yesterday he called and said he had to file Ch. 13, but that he would still need to liquidate house. How does his BK effect my ability to purchase deal? My plan was to get deed, P&S agreement & necessary authorizations then work on the short sale. Now What?
Most likely you will need to negotiate a deal and then talk with his BK attorney to present the offer to the bankruptcy court. You will also need to get clearance from the seller to talk to the lender on any short sale.
I did a purchase of a property a few years ago where the owner was in Ch 13. In that case there was plenty of equity and a hot market. The issue for me was trying to hold off a foreclosure sale until I got funding lined up.
Good luck with this,
Ed