Buying Home In Banckruptcy
I am condsidering buying a home from seller who is in banckruptcy.Seller not approved for short sale. Bankruptcy Attorney can file a motion to release home from bankruptcy. Ther are two liens on property. Are there any additional fees in this process?Who would have that info. Are these then paid by the buyer? What arethe risks for the buyer? If I proceed with transaction,does this guarantee the home will be sold to me?
I would appreciate any feedback. Thanks!
Fees are not your worry. You can ask the bank to wipe those off or take payment when the house sells to your end buyer.
Do you have cash to pay off the liens? It might still be possible to catch the morgage up. Have you talked to the bank about forebearing the back payments? A forebearance plan could take the followig forms:
add the amount owed to the back of the loan, recasting the loan to adjust payments upward for the new payoff amount.
Payoff the back amount over 90-180 days. They will try to get you to do this as quickly as possible. But it is negotiable.
Then the payements remain the same after you have caught the loan up.
Pay off the backpayments in a lump sum when the house sells. That is hard to get them to do but you can ask.
Remember, the bank is pissed at the seller because they stiffed them the money for 6 months. It's about money and if you can sing to their tune they will be a lot more flexible. You must sell your ability to make timely and accurate payments for 6 months to 5 years if need be. I would suggest you talk to the seller's attorney to see what happens with the fees. I doubt they go to any end buyers. Often they are expected out of the proceeds of a sale.