This hasn’t happened to me, but I know quite a few investors, where the holdover tenant/previous owner files bankruptcy AFTER the sale. In this case, the sale goes through, and it could take a year or two to get them out of the property. If you end up dealing with someone who knows how to play the game, you could be in it for the long haul.
–Natalie
:’( :’( :’(
[QUOTE=Natalie-VA;884056]This hasn’t happened to me, but I know quite a few investors, where the holdover tenant/previous owner files bankruptcy AFTER the sale. In this case, the sale goes through, and it could take a year or two to get them out of the property. If you end up dealing with someone who knows how to play the game, you could be in it for the long haul.
–Natalie[/QUOTE]
If they file for BK, there is a possibility that the sale will be unwound. It depends on the circumstances. The BK process needs to make sure that assets that had real value were not sold off at a discount. In a short sale that should be obvious. How long it takes to show what is obvious when there is a BK process is the issue.