Buy A Foreclosure With Chapter 13 Bankruptcy
Can I buy a Foreclosure house whose owner has just filed recently Chapter 13 bankruptcy. If yes, then what precautions should I take in making an Offer.
Can I buy a Foreclosure house whose owner has just filed recently Chapter 13 bankruptcy. If yes, then what precautions should I take in making an Offer.
For you to buy the house, the Bankrupycy Trustee must release the house from Ch 13 protection. In other words, the Trustee must approve the sale while the owner is in Ch 13.
[addsig]
Thanks for helping me out. Let me put some figures and, so that an intelligent decision can be made whether to persue or not:
Property Status: Foreclosure was filed and now got Chapter 13 Bankruptcy.
Foreclosure reason: Litigation (not sure what kind of litigation, do I need to know)
Bankruptcy reason: To avoid Foreclosure
The new Trustee has appointed a monthy payment of $315/month. Not sure how all creditors will be paid from this amount.
Now if I buy the house, I do not know that how the First, second mortgage and other Liens will be paid. Do I need to pay them, in order to close the House? I think so. If not then, who else will pay them. May be after selling, he will still continue to pay them and I can get a fresh cut now. What do you think?
He is basically looking to get $ 35,000 in his pocket.
So first of all I need to find out that which creditor need to be get paid. If ,worst case, all creditors need to get paid, then if we do Math, it comes out to be a profit of 57,000
Now if he gets 35,000 cash, then I get in my pocket 57,000 - 35,000 = 22,000
Let me know if all this makes sense OR is there big CATCH which I am missing.