Subject To During Bankruptcy
I wanted to ask if it is possible to use subject to when a homeowner is going through bankruptcy, the house payments are current, I couldnt find a bankruptcy forum so hopefully someone here will have some anwers. Thanks
Any sale of assets would have to be approved by the bankruptcy trustee. The lender will be aware of the transfer of title, so you will not avoid notifying the lender.
Albioncpl,
Glad to meet you.
Your seller has an automatic $100K exemption so unless the seller has more than $100K in equity have your seller request a release of the property from the bankruptcy court.
The bankruptcy trustee can release the property so he or she is the one to talk with.
Once the property is released then you can follow through with the Subject To purchase. Now there is no notification to the lender, just continue making the payments.
Arizona Homestead Statutes
Arizona's Homestead statutes, A.R.S. §§ 33-1101 through 33011-5, provide an automatic homestead exemption, in the amount of $100,000, No written claim or recording is required.
Here are the statutes:
33-1101 . Homestead defined; homestead exemptions; persons entitled to hold homesteads
A. Any person the age of eighteen or over, married or single, who resides within the state may hold as a homestead exempt from attachment, execution and forced sale, not exceeding one hundred thousand dollars in value, any one of the following:
1. The person's interest in real property in one compact body upon which exists a dwelling house in which the person resides.
2. The person's interest in one condominium or cooperative in which the person resides.
3. A mobile home in which the person resides.
4. A mobile home in which the person resides plus the land upon which that mobile home is located.
John $Cash$ Locke
[ Edited by JohnLocke on Date 05/14/2004 ]
Mr. Locke,
You are da man!
jeff12002,
Once in a while I get lucky.
John $Cash$ Locke
OK. What about this situation?
If there are a lot of missed mortgage payments that were rolled into the bk13, so their monthly payment to the court (trustee?) is composed of current mortgage, past mortgage, and other items, then...
If I get the property pulled out of the bk by the trustee, would "taking over the payments" in this instance mean paying the portion of their monthly payment to the court which is attribuatble to current and past mortgage?
And, since it is now pulled out of the bk, does that mean I would now be making the payments to the mortgage company as opposed to the court?
OR: Is sub2 different when there are past payments rolled into bk13.[ Edited by thestudentisready on Date 05/14/2004 ]
thestudentisready,
I think you are talking about a different phase of the bankruptcy than we are. Until now, It has been my asumption that we were talking about the time between the petition for bankruptcy being filed, and actually being declared bankrupt by the courts. During this time, essentially no one is getting paid, and no agreements have been struck. The chapter 13 that you are referring to hasn't been approved yet, it's still being evaluated, and no payment arrangement has been struck.
That's understood. I'm talking about a situation I'm looking at right now.
I'm not trying to hijack the thread... it just looked like the question had been answered, and the title fit, so I didn't see the need to start a new thread. I can if necessary. No worries.
To all who responded thank you, and in particular to Mr Locke, you are a very clever man, thank you.
To John Locke, i wanted to clarify with you, is it 100k in equity or the actual value of the property, for example, the comps for the area show a 109k as what it might fetch on the market, the seller owes 85k, so would it be covered under the homstead statute?