I’m going thru the same type deal.Had a seller deed me a property with a warranty deed.I ran a title search and found that this person has several leins and judgements.He is going thru the BK trustee to get approval to this deal and also to see if he can get the leins released. I will know next week if he is successful.
By the way,I have not recorded the deed until I find out if the trustee will let this happen.
Hope this is of some help.
Seller Wants to deed property, but is in bankrucptcy. Need Help Please!! - Posted by BPorter
Posted by BPorter on December 07, 1999 at 22:31:40:
Hello,
I am having trouble with this deal here in Chicago and would like suggestions. A seller has three houses for sale. The house are
FMV 65K
Payoff 47K
FMV 65K
Payoff 57K
FMV 75K
Payoff 65K
FMV 150K
Payoff 120K
The seller is willing to deed all of these properties over for 10k. This are all in quickly appreciating area and I would’nt mind holding them long term. THe only problem is that the seller is in bancruptcy and doesn’t know a good way for us to make this deal happen. Any help is greatly appreciated.
I bought my principal residence through a bankruptcy court. We had negotiated a sale agreement while 1 of the sellers was in a reorganization, ch. 13. When he converted to a liquidation (ch. 7?) the house became subject to the jurisdiction of the bankruptcy court and the trustee. The trustee had to make sure the sale was at arms length and at FMV. Remember, he has to use the proceeds to pay of the creditors. Then there is a period of time for the creditors to object to the sale if they wish. Ultimately, the deal has to be approved by the judge. Good luck.
Does the seller have an attorney that is handling his bankruptsy? If so, ask the attorney. The residing judge will probably have to approve any sale that is made.