I have been looking at bankruptcy properties. Do you treat these like yyou would a foreclosed property? I don’t think that they are REo properties yet. would I have to talk directly to the lawyer or to the owner? HELP!!
These are not foreclosed properties but you have a new layer of bureaucracy to deal with, the bankruptcy court or trustee. They will administer the property and offer it for sale looking to maximize the return.
Thanks for responding. Can you negotiate much like you would a foreclosure? Meaning, trying to get the property at a 20-20% discount or greater?
Everything is negotiable. Just remember you will not be dealing with the property owner but rather the bankruptcy trustee whom may or may not be knowledgeable about the property’s features and value. However, they will likely obtain an appraisal on the property beforehand so know your subject matter when you go to deal.
71tr-Thanks so much for the advice. one last question. Is there a time period that the house will usually sit in bankruptcy status? And if so, will that date for the bankruptcy to be completed be advertised/public knowledge.
This is getting into a legal area beyond my expertise. Each bankruptcy proceeding is unique. I would suspect disposal of real estate will require listing with an agent to maximize exposure and return. Bankruptcy proceedings are governed by federal law so do your research to become familiar with the process. Good luck.