Seller under Bankruptacy - Posted by Rao

Posted by John Merchant on November 21, 2005 at 09:47:48:

When Seller filed his BK, he handed over all his realty to the BK court to manage, so of course it’s no longer his to run and manage as he might want.

I’ve managed to buy a fair number of properties from the BK Court by filing motions supported by evidence of property’s value (in range I want to prove).

BK Trustees main job is to find money to settle creditors’ claims, so when I’ve offered cash money, the T’ee has paid attention and frequently approved my plan & purchase offer.

Title to any realty being sold with T’ee’s approval and by court order is clean and marketable title.

And, by the way, since a Fed BK Court’s rulings have legal precedence over state courts, once the T’ee does approve something, it’s beyond attack by other courts.

Seller under Bankruptacy - Posted by Rao

Posted by Rao on November 20, 2005 at 11:48:35:

I am in the process of buying a house, and I came to know through the seller’s attorney that they can only close the house after getting approval from the court since the seller is under bankruptacy and also approval for a short payoff on their second mortage. Also, they asking me to get commitment before they can go to the court…I Didn’t understand why the seller needs to go to Court to sell the house…Is the house under bankruptacy ? Is the title going to be clean ? Is it easier for them to get approval for the second mortgage payoff ???

Please advise…Thanks in advance…