Need Help On Possible Deal QUICK!
Her house is in foreclosure, she's filed bankruptcy. I don't know how this effects things. If she filed bankruptcy already does that make things riskier or harder for me? Wow, my ad came out today and I already got a call I'm pumped! I know this isn't a guaranteed deal but I wasn't even expecting a call! Now I gotta find out more about this place. What else do I need to ask her? She didn't have the numbers in front of her but she'll get them. HELP!
Hi snek11,
Ask her what attorney filed the bankruptcy for her, and then you can call them to find if the Stay has been lifted. The foreclosing bank will probably be able to tell you this too.
If it has been lifted, it is fair game to go after! Keep us posted!
BAMZ
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Since most financially challenged mortgagors will contemplate bankruptcy, perhaps you should learn a bit about the impact bankruptcy has upon the mortgagor.
Lots of inexpensive books available that can provide a cursory insight.
The short answer? If the Homeowner is in bankruptcy, she will need permission from the bankuptcy court to enter into just about any type of agreement... and especially one that involves the sale of her home.
Even the simple act of listing a home with a real estate broker is a voidable contract unless the listing agreement is pre-approved by the bankruptcy trustee.
ShortSalePro,
I have bought many preforclosures that the sellers were in bankruptcy. I did not make any agreements with anyone until the stay was lifted. When you get at this stage, I have never had any issues.
If this is a touchy issue for investors to beware, pehaps I should be aware too.
Do you have any past experiences that have been poor experiences?
BAMZ
Hi thanks everyone for the quick replies.
BAMZ, I don't think I know what a stay is...could you elaborate?
I'll have the numbers tonight when she gets the details ready. She said she was in chapter 13...then I asked about her dealing with the mortgage company and she says she doesn't deal with them at all...and that now she thinks she's in chapter 7, where she owes nothing to no one.
What's the difference? I'll try to do a search and learn more but I'm trying to educate myself as soon as I can.
I'd like to do a subto on this...but don't know if it's possible.[ Edited by snek11 on Date 11/05/2003 ]
BAMZ, your 'deals' could have been rescinded by the Trustee IF the Sellers were still subject to the bankruptcy, irrespective of the lifting of the automatic stay.
The lifting of the automatic stay was requested by, and for the foreclosing mortgagee's benefit.
I don't know the specifics of your transactions. If the Sellers' bankruptcy was discharged... then they are no longer protected by the bankruptcy.
But until the moment the BNK is dismissed/discharged... the Trustee's explicit permission to enter a sales contract is essential.
Another form of Trustee permission is if the Trustee abandons it's interest in the property.
[ Edited by TheShortSalePro on Date 11/05/2003 ][ Edited by TheShortSalePro on Date 11/05/2003 ]
ShortSalePro,
Are you saying that if the lifting of the automatic is allowed for the foreclosing mortgagee's benefit, to foreclose and or sell, that a willing investor would not be able to purchase the property via SS or at the Sheriff Sale?
BAMZ
If the "Seller" is IN bankruptcy, meaning that there is an open Chapter 7, or Chapter 13 or whatever chapter... the bankruptcy court rules.... before anything can be done, express permission from the bankruptcy court/trustee must be obtained to list and/or sell the property.
Getting permission isn't hard. It's just another step in the process. But without it... the transactions can be rescinded by the BNK judge.
ShortSalePro,
I have never followed through with requesting permission before. Honestly, I dont remeber what the current situation of the Bankruptcies were, but I will certainly follow through next time.
Despite my ignorance, all of those transactions paid a handsome profit!
BAMZ
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