Posted by Redline on March 16, 2000 at 23:44:44:
I dont really have an answer to your question - It’s sort of like asking what can the seller do to you afterwards if he REALLY wanted to? Well they could contact a lawyer and say you stole their property too - but that probably wouldn’t hold up. I don’t believe them filing a BK can do much to you but I don’t know for sure.
RL
Bankruptcy Question - Posted by BR
Posted by BR on March 13, 2000 at 22:30:51:
If a seller deeds me a house that is in FC and I cure the First who is FC’ing, what happens if the seller then files BK? How will that effect me?
Re: Bankruptcy Question - Posted by Redline
Posted by Redline on March 14, 2000 at 24:06:04:
Once the seller declares bankruptcy a trustee will be assigned to determine all assets and liabilities and there is a 4 year “look back” window to prevent unlawful transfer of assets. They will see the home sale and will want to know if it was done to protect the asset, was it an arms-length deal, etc.
If there was alot of equity in the house that the trustee thinks they could’ve gotten through a forced sale to pay debts they can void a sale. (Remember, couples can exempt $30,000 jointly from a BC and this includes equity.)
In your case, there probably wasn’t alot of equity (?) and it was in arrears anyway so you probably wont have a problem BUT I am not an attorney nor do I consider myself an expert.
RL
Re: Bankruptcy Question - Posted by BR
Posted by BR on March 14, 2000 at 06:21:36:
As it stands the payoff is about 24k under the ARV but the house is VERY rough and a short sale will be required with the lender to make it work for me. Appraisal is 40k and payoff is 48k. There is a potential for about 20K profit (short sale considered). My concern is that the seller mentioned that he had considered BK just to buy a little more time. So my question is if I can figure a way to make this deal work, what happens if he decides to file BK afterwards? How can a buyer protect himself in a situation like this?