Gotta Deal? need advice - Posted by George

Posted by Michael Morrongiello on July 17, 2000 at 15:36:03:

This seller is in an Active bankruptcy and for that matter a chapter 13 plan which involves creditor repayment. Any sale of her property will have to involve the approval of the bankruptcy court and trustee. In short, she can’t strike a deal with you unless it is “blessed” by those parties.

It very well may turn out that the bankrupcty trustee if aware that there is equity in her home might insist that it be sold closer to its true FMV so that some of that equity can be used to repay her creditors.

I would suggest that you approach deal from the standpoint taht you will formally ASSUME her FHA 6% debt and not take title “subjec to” it. This might be perceived as providing her with some debt relief. That low rate is certainly attractive and if you can take it over it would be worth the risk of your personal liability to repay it. Just my .02 cents

Michael Morrongiello

Gotta Deal? need advice - Posted by George

Posted by George on July 17, 2000 at 11:54:47:

Here is the deal.

lady called on Me Buy House ad. She wants to sell home and lease it back to her… she filed Chapter 13 8 months ago to slow foreclosure. I am not interested in doing a Lease Back. Here is the situation the home is appraised for 69K her pay off is 43K and change. How do I do a subject to and get the deed. I think you need to realease from Bankruptsy? The reason she has a FHA 6% percent loan on this home. I would hate to loose that kind of money. I can pay cash for the home but FHA loan has cheap money. Besides cash feels good. I would like to sell it on a wrap. any ideas on the steps