Posted by JHyre in Ohio on July 24, 2003 at 05:52:36:
For more practical answers, post to attention of JT-IN/OH on the MNG. To briefly answer your questions from a legal (as opposed to investing) standpoint:
Bankruptcy will delay the sale, but the foreclosing party should be able to get the property removed from the bankruptcy within a few months. It’s purely a delaying tactic by the seller.
Normally the owner, but that may vary by state.
You get the property after paying off senior liens (i.e.- the first).
I am a newbie investor. I have a number of questions regarding judicial foreclosures:
Yesterday, I met with a homeowner whose house is scheduled to go to auction next week. She informed me that she is filing for bankruptcy today and consequently isn’t interested in selling me her house. How does the bankruptcy filing affect the foreclosure process? Is the debt relieved or just “reorganized”?
What role can an investor play to help “solve” the homeowner’s problem? How should the investor remain involved/monitor this situation to potentially set up a transaction?
Assuming that a house goes to auction and the winning bid exceeds the foreclosing lienholder’s judgment amount, who receives the “excess” monies? Is it safe to conclude that once all lienholders are satisfied that the equity gets paid to the homeowner?
Finally, what is the benefit of winning a foreclosure auction brought by a second mortgage holder or for that matter any lienholder not in 1st position?
Since the auction is scheduled for next week any advice or insights on how to approach it will be greatly appreciated. Thanks in advance.