Posted by Mark-NC on July 20, 1999 at 22:45:33:
I had this same experiance and the seller was going to give us the home for what she owed on it but the BK attorney said the courts would probably not let that happen. It was going to be a long drawn out process to see what we could get it for, so we didn’t bother. Like Bill said the courts are probably not going to let the seller throw that equity away when it may be a viable asset to pay creditors.
Mark
Buying a house from someone that filed for bankruptcy - Posted by Paul
Posted by Paul on July 20, 1999 at 18:52:38:
I am in the process of negotiating to buy a house from a homeowner who has just declared bankruptcy and just wants to walk away from his house. Are there any laws restricting me from buying a house at far below market value from someone who has just declared bankruptcy, and do I need to petition the bankruptcy court to get the house released so I can buy it. If anyone has done this I would greatly appreciate any information on what I need to do.
Re: Buying a house from someone that filed for bankruptcy - Posted by Bill K. (AZ)
Posted by Bill K. (AZ) on July 20, 1999 at 21:26:05:
Paul,
I have had one experience with an owner in bankruptcy. I was working though an agent. To my knowledge, I was not limited by any laws on what I could offer. However, the bankruptcy judge needed to approve the sale. Keep in mind, that since your owner is trying to negotiate some relief from his/her debt, it is unlikely that the judge is going to allow you to purchase this home at a deep discount. If the judge allowed this, he/she would be doing a disservice to the owner’s other creditors.
Having said that, you can pick up these homes at a discount. I almost purchased a property worth $183,000 for $146,500. However, at the last possible minute, the owner’s son stepped in and took over payments on the home.
Good luck to you.
Bill K. (AZ)