Subject To And Bankruptcy

Anxious seller, unemployed, two months behind, willing to "subject to" is also filing for bankruptcy.

Have any of you faced this? Does bankruptcy affect my purchase?

Should I purchase before bankruptcy is filed, or after? Seller plans to finish his paperwork by this weekend & file first of the week.

What would you do?

Dan

Comments(12)

  • Apprentice2Him18th July, 2005

    Thanks, Bargain!

    I see seller tomorrow. Seems bankruptcy probing could increase risk of incurring "due on sale"

    Any thoughts?
    Dan

  • InActive_Account22nd July, 2005

    Have her deed you the property and take over her payments.

  • richsis24th July, 2005

    Thanks alot. After she deeds me the property, is it worth assigning or should I just try to find a tenant and do a lease/option?

  • motivated_buyer25th July, 2005

    Tenant Lease option or just 1 year lease. CASH FLOW!! Then refi in a year.

  • ryand15th March, 2005

    The lender usually will reinstate the loan as long as they havent filed a sale date yet as far as i know. The further into the foreclosure the less chance.

    That is basically it from what i read.

    "Investor pays $1,000 to get the deed, and now must pay $1,200 mortgage payment + insurance+taxes"

    1000 to get the deed? not sure what you mean by that. You pay the seller this for them to sign you over the deed?

    if the normal mortgage payment is 1000 a month then you should sell on a lease option for like 180-200k and payments of like 1300 a month (for example).

    oh yeah, ask for a good deposit from the rent to owners. like 5k. that will cover what you put into it.

  • ryand15th March, 2005

    haha.
    good point john.

    i assume that people would at least do these things.
    or i hope so anyway

  • GoldenBear15th March, 2005

    Quote:
    On 2005-03-15 21:37, ryand wrote:
    1000 to get the deed? not sure what you mean by that. You pay the seller this for them to sign you over the deed?


    ryand,

    I simply was referring to "U-Haul" money, or just the money I would pay the owner to go through with the deal and move out, when I said "$1,000 to get the deed". Sorry for the confusion.

    Thank you for your reply.

  • JohnLocke15th March, 2005

    GoldenBear,

    I think you will find that most Judges give the property owner great latitude before they take a persons house away if a person can make up the back payments.

    Lenders are aware of this, so they will give you a letter stating the amount it will take to bring the loan current and re-instate the loan.

    There maybe exceptions to this, but from the negotiations I have done and seen done with lenders this is the norm.

    John $Cash$ Locke
    [addsig]

  • jrazulis22nd July, 2005

    Hi - Where can I purchase the Demographic Marketing System you created ?

  • ttime26th July, 2005

    Yeah John, How can I obtain a copy or your "Demographic Marketing System?

    Thanks

  • JohnLocke26th July, 2005

    ttime,

    Glad to meet you.

    The DMS is in my course and if you follow it you will know when to pass and when to deal.

    John $Cash$ Locke
    [addsig]

  • mrmark27th July, 2005

    Hi,
    Consider contacting the trade assn. in the state for
    title companies. Lok on the web, then contact the board members of the assn., these guys/gals have been helpful for me in the past, plus are probaly able to direct you to someone. Possibly someone w/some specific info. Plus, they as board members, play no favorites, or it could affect their position. Yes, the list is long generally, yes, it pays to put the time in.(generally) Give it a try - Mark

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