Posted by Justin on June 21, 2006 at 12:44:40:
What chapter are they in?
4 Houses and in Bankrupcy Ohh My - Posted by Micheal
Posted by Micheal on June 20, 2006 at 22:51:01:
I have a seller who has 4 houses. I was going to buy two of them but the payoff could not be ordered because the seller is in bankruptcy and did not tell me. So I can not purchase the houses unless he talks to his lawyer and goes thru court and all of that. With that being said I would love to buy all 4 from him at once (at a cheaper price) and sell them to some other investors and make a dollar or two and move on. How should I handle this situation? I would purchase the houses hard money so I can close quickly. Then sell them to some other investors with no problem
Re: 4 Houses and in Bankrupcy Ohh My - Posted by Chris in FL
Posted by Chris in FL on June 23, 2006 at 21:27:29:
Don’t know a lot about bankruptcy and sale of houses, but I am working on one right now. ARV - $130k, repairs $2-5k, paying $95k cash. Not a great deal, but it should flip quick and easy. It was approved by the bankruptcy trustee with no problem, and seller’s attorney says judge signing off is all but a given since trustee approved. I don’t much else about the seller’s circumstances, but clearly possible for some equity to be left for buyer if circumstances of the bankruptcy warrant it. Best wishes!
Re: 4 Houses and in Bankruptcy Ohh My - Posted by John Corey
Posted by John Corey on June 23, 2006 at 11:39:04:
Michael,
You need to get permission of the court to buy. Assume that if there is a ton of equity that can quickly be truned into cash the court will do that and you will not have a deal. Hence the court will mainly be interested in an offer from you if they believe that the property has little equity that can be converted to cash.
Put another way the better the deal is for you (more so if this is a quick flip) the less likely the court will have any interest in the sale to you.
Pursue the deal just in case. keep your eyes open so that you realize that your interest and the courts are somewhat misaligned.
John Corey
Re: 4 Houses and in Bankrupcy Ohh My - Posted by Zach
Posted by Zach on June 21, 2006 at 03:06:00:
Anyone correct me if im wrong but can’t you have him deed the house over to you, which im sure he would be willing to if he trusts you and is obviously in trouble. People run the risk of the bank demanding immediate payoff of the loan but you will be refinancing with a hard money lender to pay it off anyhow. I assume you would have to payoff the bk with the equity though as well and any prepay penalty if there is one. The seller should be able to order a payoff on his own property. Keep in mind that most hard money lenders will only go to 70 maybe 75%ltv.