Last minute BANKRUPTCIES... - Posted by Sojn

Posted by Randy (SD) on July 16, 2005 at 08:43:07:

How do you know “75% of these home owners file bankruptcy by the end of business on Friday” that would result in 75% of the foreclosure sales being canceled, is that what is occurring? As for keeping ín contact with those homeowners, yes… keep pursuing all of them.

Last minute BANKRUPTCIES… - Posted by Sojn

Posted by Sojn on July 15, 2005 at 16:31:58:

In my state, foreclosure auctions are held every Saturday.
75% of these home owners file bankruptcy by the end of business on Friday.

Most will file Chapter 13 and ‘try’ to make some sort of 5-year payment plan. Most will not be able to keep up.

As an investor, how can I benefit from this opportunity? Is it worth my while to keep in contact with those in Chapter 7 or Chapter 13 bankruptcy?

Please advise.

Re: Last minute BANKRUPTCIES… - Posted by JT-IN

Posted by JT-IN on July 16, 2005 at 10:16:16:

Homeowners filing BK to forestall the sale is just part of the landscape of investing in foreclosures. Yes, you should stay in touch with these folks, since their financial problems are far from over, and the foreclosure is merely postponed, not dismissed.

What is key here is to become knowledgable in the BK area, which is quite involved. You must KNOW what you can and cannot do, as it relates to purchasing RE from a homeowner in BK, othewise you could go over a cliff with your investment approach. This is easier said than done, since there is no single point of education on the BK process, but the knowledge is key, so seek it out. Here are a couple of sites that you can read some bsics on the subject. You may want to continue reading at the Library, or from other sources, to broaden your knowledge into a more complete foreclosure investor.

JT-IN

Links:

http://www.nolo.com/article.cfm/objectID/1FF752C2-0C80-4539-8B159557A55CC17D/213/161/176/FAQ/

http://www.ksb.uscourts.gov/faq.html

http://www.smartagreements.com/cgi-local/SoftCart.exe/bltopics/Bltopi45.html?L+scstore+qclg4529ff092909+1110473468

http://www.bankruptcyatoz.com/bankruptcy_code/california_bankruptcy_code_707b/