I have a pre-foreclosure property that is “Under Contract” and learned that the Seller is also in a Chapter 13 repayment plan (only owes $1200 left). The Seller made a Motion to Sell (and we were able to get an foreclosure extension) but the Seller missed the hearing (e.g., his boss wouldn’t let him go). I don’t want to lose the deal. What are the ramifications if I close without the bankruptcy courts approval? It is a cash purchase. Right now the Seller is making about $8,000 after Realtor fees. Is there a way to close now without trying to purchase it at the county steps? Right now I am buying it about $20,000 below actual market value. Any ideas? Can I buy the underlying note at full value and have the Seller quit-claim the property to me? If I buy it will the Bankruptcy Court have rights to the property? Any brilliant ideas?
I have about 2 weeks before the home is foreclosed on.
Stop. Listen.
You need to buy the note 100% from the lender first. Then have the seller do a Deed in Lieu of foreclosure to you (the new buyer)…
Pull title… title must be clean
Sellers Bankruptcy Chap 13 means nothing
No Realtors/ no real Estate fees/ no attorney fees involved
You as the New Buyer will step into the shoes of the seller as new note holder. Walahh. Easy Peasy.
Subject Property must be vacant at the time the Deed in Lieu is recorded.
We do this all day. You’ve got time to get it done… Just purchase the note from the lender at 100%!!
:biggrin
Thanks…that is a great idea. I am going to see if I can get the Seller to sign a Letter of Authorization and contact the underlying mortgages. If I can get the mortgages to deal with me it’ll be great. I live in Utah.
Let me know if and when you need help as time will be of the essence to get this done correctly.