I am working on a preforeclosure in Pflugerville. The seller hires an agent awhile ago but no result. She turned to me and told me she wants to sell the house but will file bankruptcy anyway. The house has two mortgages on it, both are from banks. I think it could be a deal for short sale but don’t know how to deal with the agent and the bankruptcy. Any suggestion? Thnaks.
With a short sale the mortgage companies will pay the commission but this will cut into their bottom line. Most agents will bow out on a preforeclosure if you are trying to save the seller and just bringing the loan current. If you found the property thru the agent they should get paid something for leading you to the deal. If you can get the deal closed before the bk filing you will not need court approval in most cases. If not the court will need to approve the sale of the property. This is not all that hard to do, it just takes time. The sellers attorney will prepare a motion to sell the property according to the agreement you have with the seller. Notices will be sent out to all interested parties and a hearing will be held if one of the parties objects to the sell. This will actually give you more time to secure financing etc.
It could be hard for everyone to accept a low enough price for you to buy and resale for a profit. Put the numbers to it and see if it worth the effort.
If I can help further please let me know
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
This situation has a whole host of ambushes awaiting you. Unfortunately I must be very brief because I have an appointment to buy a property.
The agent may be inept. The property may have been overpriced. I don’t know. You have to deal with the agent to get cooperation and/or a written release… Buyout or walking around money may do it.
Do you know how to do a short sale? Many lenders want Realtor involvement to prevent “sweetheart deals”. Has the Realtor sufficient experience doing short sales? This could be a case of Curley, and Moe meeting Larry.
The court will look back (I believe 12 month) prior to the Bankruptcy to see that there has not been a transaction which may be characterized as a “Fraudulent Conveyence”.
The owner may hug you and tell you what a hero you are for the bailout-only to sue you in a couple of years using the “sale under duress” argument. Judge and jury now sees an opportunist, a plunder, a pirate who took unconsciable advantage of this poor distressed property owner.
When I do these deals I have them sign and sign and sign documents disclaming every thing and any thing. This is one instance where I would recommend legal assistance.