Posted by Natalie-VA on August 23, 2005 at 17:18:53:
Terrance,
There’s a difference between and dismissal and releasing the house from the BR. I am not well versed enough to give advice here, but I think you are losing something in the communication between you and the seller. Have your settlement agent get on the phone with the seller’s BR attorney to find out what’s what. They should also follow up with the BR trustee assigned to the case to verify what the attorney tells them.
Posted by terrance on August 22, 2005 at 19:25:51:
I presently have a property under contract,which would be a first real profitable deal. The problem is that the seller is in bankruptcy and must obtain a dismissal letter from a judge in order to sell the property. I have been waiting for this letter for over a month now and the title company will not close without this letter. I have already paid for inspection, appraisal,and earnest money so I kind of have no choice but to wait. Not to mention that IF this letter ever does come I’ll make a pretty good profit. My question is has anyone ever been through this and are these properties worth the hassle?
Has the bk. been dismissed and you’re looking to provide the title company proof of dismissal? If yes, get a copy of the motion to dismiss which is signed by the bk. judge.
If you’re waiting for the bk. to be dismissed you need to confirm whether the Trustee or the seller’s bk. attorney has filed a motion to dismiss (ask the seller’s attorney)-- and confirm the date when the motion will be heard. Assuming the motion to dismiss will be granted get a copy and provide it to the title company. The judge will not send a letter.
Posted by Kristine-CA on August 23, 2005 at 10:11:58:
I deal with a lot of title issues such as probate and I hate the waiting.
But hassle? What hassle? You have a property under contract, in
escrow, right? Just make sure that that the seller signs an extension of
the close date so that they can’t back out if they get a better offer while
you’re waiting on the the discharge.
Contact the BK trustee (it’s public information in the court file) and
speak with them about the time frame regarding the court dates and
discharge. If it were me, I would have done that first thing. Sellers,
especially those in BK, often misunderstand the status of their assets in
BK. There also those that are trying to sell assets without the trustee
knowing.
Consider yourself lucky that your title company is totally on top of this.
Stay in controlf of the deal. Get the information you need regarding
time frame. Get the seller to sign an extension to make sure you stay
in contract. And go find another deal while you’re waiting for this one
to close. Kristine
Posted by terrance on August 23, 2005 at 16:56:33:
Nike, you and kristine both seem to have experience with this subject so let me give you a little more info. The seller is in bankrupcy and wants the house released in order to sell the house. He was supposed to contact his bk trustee and get all this started and I was given a difinitive date from his him supposedly from the lawyer but that date recently passed. So how do I go about doing my own investigation?
Get a third-party authorization signed by the seller, and contact the trustee YOURSELF. Believe me, the debtor’s attorney has NO incentive to get this done in a timely fashion.
Kristine