Found house owner just filed bankruptcy.... - Posted by Mellisa

Posted by Kelley on June 09, 2000 at 23:05:57:

We just did one of these but unfortunately our folks weren’t out of their house yet. We worked through our realtor and let him do most of the legwork. I know that he contacted the bank and we were able to work out a deal based on the outstanding mortgage amount but this was more of an expense for us. The bank required that we pay for appraisals for both them and us and the purchase price had to be sufficient enough to cover the mortgage plus a markup fee that they charged based on the appraisal amount. It seems that they still want to make a sufficient profit even though you catch the forclosure before they have acquired substantial lawyer fees. To be honest, I don’t think that we would go that round again. But if you can get a good price go for it! You will learn a few lessons.

Found house owner just filed bankruptcy… - Posted by Mellisa

Posted by Mellisa on June 05, 2000 at 18:19:44:

We found a house where the owner has just filed bankruptcy, they have moved out of the house, but it has been taken foreclosed or what ever is done in those cases by the bank yet. What if any thing can be done? Contact their bank and make an offer like a REO? Or see if it is too late for us to make an offer to the seller. The county still has it listed under the owners name, not the bank. Please help.

Similar situation, but…this is how it is working to this point - Posted by AL (Ohio)

Posted by AL (Ohio) on June 11, 2000 at 01:44:54:

I signed a contract to buy a property from a fellow before I knew that he was going to be undergoing foreclosure proceedings.

Once I found this out, he was obviously a motivated seller. This fact was not what worried me. I was worried about who actually owned the property, liens against the property, etc.

Turns out, the owner will own the property clear up until the property is auctioned off at the county courthouse. So, as long as my agreement with the seller is still in place prior to the sale, and I can complete the transaction prior to the sale, my contract is enforceable.

Seller and buyer walk away from this deal in much better positions.

I would suggest contacting the county courthouse where the subject property is located. Specifically, the department of taxation. The county property records should show if the property has transfered title to the bank. If not, the owner still owns it, and you can do the deal with them.

If the bank owns it, just make an offer based on whatever your lawyer would recommend. i.e. some places have a minimum offer at the county courthouse sale of 2/3 of the fair market value. Nonetheless, find out what the owner owes against the property, and ensure you can get clear title to it. INSPECT the property.

Consult a lawyer on this one, as he will be your best resource I believe.