Buying SubjTo when seller is in a BK13 - Posted by MoniqueUSA
Posted by MoniqueUSA on February 15, 2002 at 10:37:25:
Anyone ever buy a property Subject To when the Seller is in a Chap13?
The seller knows they either need to be out of the BK13 or they need permission from the BK Trustee to sell their house. They prefer to keep the BK13 protection rather than do a voluntary discharge.
To the untrained eye, there is probably 10K - $15K of equity in the deal. So, financially it would seem to make sense for the Trustee to approve the sale at our price (given closing costs and realtor commissions in a typical sale). We’re interested because we see $20k - $25K of profit.
The big question is will the Trustee approve and will the lender agree to a Subject To sale. I assume that the lender must be notified of the sale and its terms, and that the lender must give final approval. If that’s true, does this shoot our SubjTo deal in the water?