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