Posted by John Merchant on December 17, 2005 at 16:27:12:
I take it that you didn’t bother getting title insurance, thus your surprise @ existence of the BK.
Legally, all BK’s property rights pass to the BK Court when he files his BK Petition, and the BK petitioner doesn’t really control those assets once he files…so you really have only part of what you must have to do anything with the property.
The BK Court must be petitioned by you or your lawyer to get the Court’s permission to buy or take the property.
And the BK petitioner likely committed fraud in deeding you the property without divulging the existence of his BK status and if he took any money from you, he’s committed an illegal act…this fact might be effective in forcing him to unwind the deal and give you your money back so you don’t have to go and start a ruckus in BK Court that would land him in hot water.
By the way, the foreclosing lender could not have legally proceeded to foreclose since that action was legally stayed by the filing of the BK.
Help!!! Just Bought A Property In A Bankruptcy - Posted by Reg/Va
Posted by Reg/Va on December 16, 2005 at 21:16:09:
Hello Felllow Investors,
Well needless to say we might have got ourselves into a real pickle this round.
A Seller called two days before their foreclosure auction. We did a witness closing at City Hall, taking the property Sub2 that Friday morning and Verified amount owed to reinstate and stop the sale that afternoon. We didn’t find out about the BK until we called the 2nd Lender, then of course contacted the Seller to question the BK. The Seller forgot to mention it due to stress, her new job, etc.
We did send the foreclosing attorney the reinstatement amount and stopped the sale that following Monday.
My partner and I are concerned whether we can sell the property at this point or do we have to face the BK Courts to ask for their blessings.
Any help in this department would be greatly appreciated.
Just Bought A Property In A Bankruptcy - Posted by Natalie-VA
Posted by Natalie-VA on December 17, 2005 at 18:08:13:
Reg,
Where in VA is this one? As you just learned, reinstating people at the last minute is risky business. I can assure you that she didn’t forget anything…she screwed you. They will forget their bankruptcies, they will forget that they’re not the only owner, they will forget they have other liens, you get my point.
I’m not saying I’ve never reinstated anyone, but just try to understand who you are dealing with first.