L/O and DOS - yes again only different - Posted by SueC

Posted by David Alexander on January 10, 2001 at 15:42:17:

You can still take it subject to. What the bankruptcy court will want to make sure of is that the selelr doesnt make any money on the transaction… so the extra 10k the seller is trying to pocket would be a no no.

You would also have to payoff any arreage that is owed ofor the house to the bankruptcy court to get them to release it from the bankruptcy.

But worse case scenario with numbers like that… fix it keep paying the bankruptcy court the money for the house and rent it forever.

David Alexander

L/O and DOS - yes again only different - Posted by SueC

Posted by SueC on January 10, 2001 at 15:27:53:

This time, seller is getting ready to discharge her Chapter 13 (but has not done so yet). She will take $80K on this property, she owes $70K, it needs $5K of work to resell at $120.

I’m guessing it will be near impossible to take “subject to” since her lawyer and the bcy court will have to understand and approve first. Could wait till she discharges. Thought I’d propose a L/O now, or even just an option to buy, making the option conditional on her successful discharge of the bankruptcy, option consideration would be the $6K she is late on her mortgage. After discharge exercise the option as a purchase on a wrap, taking “subject to” without all the hassle until repairs are made and I get refi’d (i.e., PDQ).

Questions: How does this sound to you all? Are there any problems/landmines here? And, while the option technically violates the DOS, think the bank would cause trouble once they are brought current?

Your comments greatly appreciated!