If the Bankruptcy has been dismissed and the Lender has been granted a Motion for Lift Stay then the property should be free to be sold by the seller before a formal foreclosure is completed.
You will need to talk to the seller and get an Authorization to Release Information form signed in order to talk to the bank to see what they would take for the property via a Short Sale.
There are some really well experience individuals on this site that can probably help you through this. I personally use a Realtor in my area that has a lot of experience working with banks on Short Sales etc. My Realtor does all the work, I make all the money and the bank pays him his commission, not me.
I have a buyer who bankruptcy discharged in May. The 1st is forclosing 9-8-04. I need to fax contract to seller in the morning. Two-bed huge lot sfh. Should i contract for 1st (32,000) and 2nd (30,000). Wich would be 62,000. Owners don’t want to make any money. How do i prepare short sale packet? House needs alot of work. I was told seller can still sell her house as long as the forclosure has not happened. Is that legal with a bankruptcy. House has arv= about 140,000. I want to flip to another investor. How do I take title? Thanks to all!
Posted by Elizabeth on August 06, 2004 at 10:52:11:
A bankruptcy does not prohibit the owner from selling the property, depending upon all circumstances. Obviously, if a foreclosure is around the corner, the owner would benefit from pocketing a few dollars and allowing you to buy the property.
However, I see nothing but problems for you in this anticipated transaction.
Don’t think for a moment that the mortgage company does not know the value of the property. They will run their own appraisal/comps before the foreclosure. You will probably not be able to do a short sale if the fmv is what you say here. You say the owners don’t want to make any money. This is absolutey untrue.
From your posting, it appears that you may be relatively new to investing. If so, I would recommend that you make your first deal a much easier one.
Read through this website for information that can help you understand what is actually a viable deal for you.