Posted by chet on January 25, 2005 at 13:08:10:
that does sound like it worked out well.
I have dabbled a lil in using bankruptcy as another tool for pre-forclosure / financially distress properties. A lot of capital can endup being tied up is what I am finding.
Borrower files CH 7 and I own the note. - Posted by Daniel_NC
Posted by Daniel_NC on January 04, 2005 at 10:37:25:
I recently bought a note and borrower has now converted a CH 13 bankruptcy to CH 7. He is willing to deed property to me but I don’t think he can do that while in CH 7. What is best approach to take with the trustee. Simply ask him to release property from BK or does my position as lien holder afford me a better option.
Thanks, Daniel
Re: Borrower files CH 7 and I own the note. - Posted by chet
Posted by chet on January 04, 2005 at 12:12:34:
check what your recorse is. can you get more than the property pledged as collteral?
This is an area in which I am interested so I would like to hear how it goes.
Re: Borrower files CH 7 and I own the note. - Posted by Daniel_NC
Posted by Daniel_NC on January 24, 2005 at 20:28:45:
Chet,
I just got this resolved last week. Here are details.
Amount owed on note $44,000
Property value as-is $23,000
I paid for note $ 4,400
The debtor/seller worked with me to get this done. I initially started the process as a short sale but it turned into the note purchase (my first). Didn’t know about the BK’s (a 13 then a 7) initially. I contacted the BK trustee and requested release of property from the BK since there was no equity. They didn’t know anything about it…wasn’t included in their case. They did a quick search on it, compared load balance to tax value and told me they had no interest in the property. I then had debtors/sellers deed the property to me and will record a sastisfaction of mtg. Took several months due to BK complications but worth it.
-Daniel