Owners Of Property I Am Bidding On At Auction Filed Bankruptcy
I followed a property through the foreclosure process and at the sale no one bid. In my state there is a 10 day redemption period in which the homeowner can still satisfy the lien or an investor can place an "upset bid" on the property. When the bid is placed, it renews the 10 day period and another bidder can come and upset the bid again.
On this property the homeowner filed for bankruptcy to hold off the foreclosure. However, since the sale already took place, is it too late for the automatic stay or can they still prolong the process?
Thanks
Hrm this is interesting. It already is 30 days or so past the sale at the courthouse. The continual bids keep extending it out 10 days at a time. [ Edited by thelemur on Date 08/06/2008 ]
Hrm this is interesting. It already is 30 days or so past the sale at the courthouse. The continual bids keep extending it out 10 days at a time. Not a surprise to me. The clerk may or may not know about the BK filing. Note that upset bid checks go to the clerk of court, not the trustee. Trustees have a lot of files to process in places like Mecklenburg county and at the latest they will catch this after the sale is fixed.
If I were in your shoes... I would do exactly what I did last time I ran into this. I continued to make upset bids and followed my initial plan. I had an upper limit, still pursued buying the property before the sale concluded (difficult then because the family left), and reserved my acquisition capital as if I were going to be the winning bidder. I knew, though, the sale had a very small probability of actually being completed assuming the bankruptcy filing was valid and accepted.
In Florida, Title Insurance is not provided by any party to the foreclosure.
There is no formal "closing." A 5% deposit is taken immediately after the word "sold," then in my County the balance is due by the end of the day. After a statuatory wait of 10 days, a Certificate of Title is issued...without Title Insurance.
You are free to contact the Title Company of your choice to pay for a search and obtain Title Insurance if the property is free and clear.
A hint here....You need to do a preliminary Title Search before the auction....or if that is beyond your capabilities... you pay up to $40 for a preliminary title search, back to the last sale. Verbal assurances work for me at this point.
Then, if you buy the property, you call for a 30-year Title Search.... Before you pay for the balance due on the property. So, your "at risk" money is limited to the amount of the auction deposit.
Hope this helps. This system works for me.
[addsig]
bargain,
If you get a certificate of title, do you then have to petition the court for a quiet title action to clear title?
Thanks guys, very informative.