Posted by Suzanne on February 13, 2002 at 14:58:10:
I’m a newbie also, but have been doing some extensive information gathering. My knowledge is growing every day. You have a major mess on your hands.
First knot: Your seller is in the process of divorcing her husband, and both of their names are on the deed. To even think about buying it, you will have to have both the wife and husband sign the contract. This may be difficult to impossible depending on how much resentment he has against her.
Second knot: She already went bankrupt. I’m not familiar with bankruptcy. Someone more experienced needs to answer. I would suggest on looking into seeing if there are leins on the house because of the bankruptcy that will need to be dealt with first. Also see if there are any contigencies on selling the house to meet any requirements that the judge may have put on the house during the bankruptcy proceedings. The house may need to be sold out right as in getting a traditional bank loan for what the house is valued at or paying all cash.
I’m sorry, but I do not know of any way or heard of any way to reverse a bankruptcy. Once you go bankrupt, that’s it.
Third knot: The house is also in foreclosure, and behind on payments. If you really want to get this house, all the back payments need to be brought up to date to stop the forclosure proceedings. Either she has to pay or you have to out of your own pocket. Also I have read to have her out of the house before making any payments, or you may have a major fight on your hands to get her out.
Even if you can get all that untangled, you still need to look at how much equity is in the house and find out if the house needs repairs. If it does need repairs, how much in repairs does it need? If the house does have alot of equity, will the bankruptcy allow the house to be sold below value? Does the house have leins on it not assoicated with the bankruptcy?
If you do get the house and the numbers work, what is your plan with the house? What is your exit stragety?
Do you see where your profit centers are comming from after all the leins, repairs, and back payments are taken care of? Are you going to have enough of a spread from what you pay for the house to what you sell the house for?
One final question dealing with the husband. You said he was incarcerated. What was he incarcerated for? Is he in jail? If he is in jail and gets out on parol early, would he be the type to go to the house and cause damage just to spite his wife eventhough she no longer ownes the property?