Posted by John Behle on March 08, 2000 at 13:05:20:
If you buy the note at a discount, that discount is yours and is a buffer. If you buy the property, a bankruptcy later shouldn’t be a problem. If you are looking at just buying out the lender’s note and riding out the foreclosure, there is a high likelihood of bankruptcy. In that case, you will have to ride it out without payments for a while, get an attorney and deal with it. It isn’t likely the judge would alter the amount owed to you in total, but could lower your payment for a while if it was an 11 or 13. Something like 93% of reorganizations do not work and turn into a chapter 7 later.