Bankruptcy - Posted by Ken

Posted by Chris Spohr on August 29, 2004 at 21:11:28:

Make sure your contract has a clause stating that your purchase is subject to a clear title, etc…

Better yet, tie it up with an Option with low (say $100) option fee while you deal with the possible legal issues the property may be encumbered with.

Bankruptcy - Posted by Ken

Posted by Ken on August 29, 2004 at 14:30:59:

I am about to sign a contract for a fixer-upper here in Central Florida. The owner is currently in Bankruptcy. I have contacted his attorney’s office numerous times, but can never get past the receptionist. My question for the experts on this site is this: Can the owner still sell his property if he is in bankruptcy? He is very anxious to sign a contract, so I am going carefully on this one. He has told me to get with his attorney for mortgage info, so I am stuck without that cruical info. Should I still sign him to a contract and put something in the contengencies stating that everyhing depends on whether or not he can legally sell the property. (house is needing windows and landscaping, owner wants $30K in $70 neighboorhood).
Any information will be greatly appreciated!! kb

Re: Bankruptcy - Posted by Jilian

Posted by Jilian on September 04, 2004 at 15:03:48:

You need to know what type of BK was filed, and if it has been discharged. If the BK is discharged, you should have no problem, but you may want to consult an attny of your own. If he is in the MIDDLE of a Chapter 13, that is he is still making payments on the BK, the Trustee may mandate that any proceeds of the home sale go to pay-off the BK. Make sure you discuss this situation with you title/ escrow officer to ensure a clean title report. Good luck!