Sub2 & Bankruptcy - Posted by Realstar

Posted by Ken on March 28, 2006 at 20:55:36:

The trustee has an obligation to the creditors to recover as much as possible for them.I do not see it happening but it may be worth a phone call

Sub2 & Bankruptcy - Posted by Realstar

Posted by Realstar on March 28, 2006 at 20:41:24:

I’ve got a homeowner that is currently in Chapt 13 Bankruptcy. We are looking at buying Sub2 and reselling (or maybe holding…doubtful). Payoff is 58k, ARV is 90k. Do you think I’ll have a hard time getting the trustee to agree to a sub2?

ARV isn’t important… it is existing FMV - Posted by JT-IN

Posted by JT-IN on March 28, 2006 at 21:58:13:

The answer to this question is undeterminable, without knowing the extent of repairs…

If 2K in repairs are needed, then No, Trustee probably won’t place nice… If repairs are 20K, this is a horse of a diff color…

Personal observation is any sale at 80% or greater of FMV, (of current appraisal, not what it is worth after rehab), usually fly with Trustee. Keep in mind, Trustee gets paid from net equity, not converting debt for secured Creditors… So if there small amount of equity left, after selling expenses to Trustee, that equals headache and not much payday… = OK to sell house to you with Trustees approval…