Posted by Natalie-VA on November 15, 2006 at 11:54:20:
Lee,
I’ve done a few of these and yes, you must get the court’s approval for the sale unless the case gets dismissed. I can’t imagine the court denying a trustee’s motion to dismiss based on not making payments unless the seller is objecting to that dismissal. I would talk with the seller’s Bk attorney and get some direction there.
–Natalie
Chapter 13 Deal - Posted by Lee Allen
Posted by Lee Allen on November 14, 2006 at 22:27:23:
I have a potential deal that has about $60,000 equity in it but the owner is in Ch 13 bankruptcy.
Here is how the financing on the property is setup
ARV - $210,000
Mortgage 1 - $120,000 (Citimortgage)
Mortgage 2 - $20,000 (Greentree)
Monthly Payments are approx $1500/mo
Repairs - $5000
The owner hasn’t been making payments on his house or his Ch 13 bankruptcy. Citimortgage has may 1 attempt in May 2006 for relief of stay and the bankruptcy trustee is petitioning the court to have the Ch13 dismissed. Both of these have been denied by the court.
The owner wants to sell me his house for what he owes on it for $140,000 but I don’t believe that he can without the courts approval.
If the court approves the sale and I buy it and the Ch 13 is dismissed and the owner does a Ch 7 can the sale be vacated?
If I encumber the property to $210,000 and the sale if vacated what happens to this mortgage. Would I owe $210,000 on a property that I no longer own or would the court have to start making the payments?
Thanks,
Lee Allen
Re: Chapter 13 Deal - Posted by lukeNC
Posted by lukeNC on November 15, 2006 at 21:59:58:
he cant sell without courts approval…
if he sells it to you and files a chapter 7 shortly thereafter 1 year or less, the trustee will most likely try to reverse that sale and it very well may be done.
Your title insurer will have take care of that.