Bankrupcy filed after contract signed - Posted by Wayne

Posted by JT-IN on October 21, 2003 at 11:05:21:

Depending upon the equity position, and if the Trustee sees anything left over to acquire… Sounds like this may not be the case, if the Bank is going to discount…

I woould want tohave this thing closed a full 3 months before they could file for Bk… The look-back period allows for a longer period than that, but if this were truly an arms-length deal, it should fly with that distance… but always at risk when dealing with a Bk and a recent RE transfer…

Good luck on it.

JT-IN

Bankrupcy filed after contract signed - Posted by Wayne

Posted by Wayne on October 21, 2003 at 10:53:23:

The sellers have left the state. I am dealing directly with the power of attorney for this property. The sellers do plan on filing bankrupcy, but were told they would have to be in there new state (Florida) for 6 months before they can file for bankrupcy. I’m trying to buy this property contigent on the bank discounting the property, the bank will have to forclose on these people, they do not intend on coming back at this time. If I get a contract signed, but it takes months to close while negotiating with the bank and the sellers file bankrupcy, what happens to the contract.

Than you,
Wayne