Preforeclosure...between Owner And Mortgage Company
I located an old apartment building I once lived in. After calling the assessor's office I found out who the owner was and called him. The owner said he has filed bankrupt and wants nothing to do with the property. It is an eyesore that looks vandalized. After calling the attorney who works for the loan company to find out when it will be foreclosed, I was told it may never get foreclosed. I spoke back and forth between the owner and representative. How can I buy the building? How can I find out when it will be available? The owner suggested I wait for forclosing because the debt is too much to assume. It needs renovating and would improve the community. I live in MO. 
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Without some numbers, it is a bit difficult to help you--Fair Market Value (after fix up), Cost of repairs, Loan Balance, Potential Income, etc. This one may be a candidate for a short sale, but we need some details.
Regards,
Ed
THANK YOU FOR YOUR RESPONSE....I'M SORRY AFTER HEARING FROM THE OWNER THAT THE BUILDING IS RUN DOWN FROM BAD TENANTS AND THE DEBT IS TOO GREAT, I WANTED TO TALK WITH THE ATTORNEY IN CHARGE TO GET A PRICE AND HE WOULDN'T BUDGE. HE CONTACTED THE MORTGAGE COMPANY THAT HE WORKS FOR AND NEVER GAVE ANYMORE DETAIL. THE BUILDING IS ON A CORNER LOT. THE DOORS AND WINDOWS ARE BOARDED UP...NO CLUE TO VIEW THE AMOUNT TO REPAIR OR THE AMOUNT OWE, NOR WHAT THEY WOULD SETTLE FOR IT. HOW LONG DOES A PROPERTY NORMALLY SIT IN MIDAIR???RIGHT NOW IT SEEMS UNTOUCHABLE UNLESS THE OWNER RECLAIMS THE DEBT AND BACK OUT OF BANKRUPTCY WHICH OR THE LAWYER RELEASES IT TO FORECLOSURE AND HE WOULD NOT GIVE ME A DATE OR TIME FRAME. HOW CAN I FIND OUT?????
Have the seller sign an "Authorization to Release" form so that you can speak directly to the mortgage company. You should contact the workout or foreclosure department of the bank. Fax in the ATR form and ask them if they would consider selling the property for less than what the owner owes. They may or may not speak to you about selling the property since the owners is in bankruptcy right now. But, once the bankruptcy proceedings are over, then the bank may consider selling it to you for less than the owner owes since it may never make it to foreclosure. The bank only wants their money, so you need to start speaking to a representative of the bank to find out if you can purchase it or not.
Tanya
As you follow Tanya's advice, be aware that you will not want to purchase this property until both the homeowner and the property have been released from the bankruptcy. If the trustee has released them both, then you can move forward. In theory the bank could not sell the property until the BK Stay has been lifted.
But it would be a good idea to start talking with the bank so that you can get updated on the property.
Best of Success!
BAMZ