Bankruptcy During Redemption Period
Could someone inform me of what happens if you are the winning bidder on a property at sheriff's sale and the owner declares bankruptcy during the redemption period (10 days in NJ)?
Would the owner retain the house?
If so, how quickly would your 20% down-payment be returned?
Thanks,
Tom
Basically a creditors hearing is held to determine owners rights and buyers rights. The sheriff will not be representing your rights and it would be vary suggestive to get some legal council.
Your 20% down could be tied up for many months during this proceeding.
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