I’M TRYING TO BUY A HOUSE WITH ALOT OF EQUITY IN A DECENT NEIGHBORHOOD. THE OWNER HAS FILED FOR BANKRUPTCY. WHAT PROBLEMS WILL I ENCOUNTER?
THANKS FOR ANY HELP MIKE DELPRETE
If you are already under contract to purchase the house when the homeowner files bankruptcy chances are the property will not be listed / named in the bankruptcy. But I would check just to be sure.
If you are not under contract, and there is a mutual interest in selling the property, then you would need to make arrangements with the homeowner to not include the property in the bankruptcy. If the property is a part of the bankruptcy you will not be able to transfer title or do pretty much anything from a legal aspect.
MATT, THANKS FOR YOUR HELP MIKE DELPRETE
Not a Problem.
Good Luck! :beer
You will have to get permission from the bankruptcy courts to purchase the house. Otherwise, they can actually rake the house back into the assets and declare the sale void (and you might not get your money back).
With someone overseeing the seller’s finances, I don’t know how good a deal you can get, but all it is costing you is some of your time so there is no reason to ot put the effort into it to see what you can come up with.