Direct mail to foreclosures found in the legal news netted this possible deal - Posted by Dave(MI)

Posted by David M. Petrovich on May 04, 1999 at 19:35:38:

I am not an attorney, and in no way should this be construed as legal advice…

but my understanding is that the bankruptcy trustee must approve any and all financial transactions involving the Debtor that exceed (I think) $200. That includes the sale of his property.

Additionally, any real estate agent or broker that ‘lists’ a property whose owner is in bankruptcy may be in for a shock. The listing agreement is invalid because the homeowner (s) did not have the capacity to enter into a listing agreement unless specifically approved (in advance) by the bankruptcy trustee.

If the listed property sells without prior approval, the trustee can void the listing agreement, and seize the real estate commission while permitting the sale to go through.

But, check with an attorney on this as this info may be dated.

Direct mail to foreclosures found in the legal news netted this possible deal - Posted by Dave(MI)

Posted by Dave(MI) on May 04, 1999 at 19:00:21:

A property worth 85,000 after 10,000 of repair is in foreclosure and the seller is IN bankruptcy The bankruptcy is final May 7 and the property is to be auctioned June 10.The seller just wants out he owes 48,800 Plus whatever legal fees.

My questions to the board are; Does the bankruptcy effect the buying process in any way?

what about the mortgagors right to redemtion… (6 Mo.) or there is no redemtion time due to it never went to auction,right?

thanks as always for any guidance in this matter:)

Dave(MI) happy investing

Re: Direct mail to foreclosures found in the legal news netted this possible deal - Posted by Irwin

Posted by Irwin on May 05, 1999 at 07:49:54:

You’re going to need help from an attorney who knows both foreclosure and bankruptcy. There may or may not be redemption rights that are still in effect. Also, it’s seems peculiar that the bankruptcy trustee would let a property with this much equity go. The attorney must be sure that the property has been abandoned by the trustee.