Posted by Dan on June 02, 2006 at 02:34:32:
Is it legal to transfer title of a house in pre-foreclosure? Yes, if by transfer title you mean transfer ownership. Bottom line…the owner is the owner until a foreclosure is complete.
And is it legal to transfer title of house that’s in BK? Sure, as long as the Transferor is the BK Trustee. If ownership transfers during the process without the Trustee’s approval, the sale can be protested and set aside. Typically, this will happen if there’s a big chunk of equity involved and a creditor balks at the idea of bypassing Trustee approval.