Someone Please Answer this Question on Bankruptcy!

Foreclosures, Short Sales, Tax Foreclosures
1

Ok, we are realllly new at this… Is a bankruptcy sale the same as a foreclosure? We are looking at 2 houses that the people have filed bankruptcy. Both owners say the debt has been dismissed. At this point can the bank sell to us or do we have to get a deed in lieu of foreclosure signed by the owners.

Both owners say they are willing to do so to help us get the houses… So what do we do now? If there is a bankruptcy can we still have owners sign something allowing us to buy from bank or does the bankruptcy cancel this out?

Also, one of the banks told us that the short sale price would be the payoff? I’m confused, I’m sure that I’ve read somewhere that the banks would strike deals on short sales… Am I correct?

2

If the bankruptcy is still pending in court, you probably cannot and should not do anything until all of the issues are resolved.

3

Have the homeowners go to the bankruptcy trustee and inform them of a buyer for the home and ask for a forfeiture of assets letter to provide the lender. Their job is to liquidate assets for the creditor including the house if its not exempted.

(DISCLAIMER) P.S. Check with YOUR attorney, I don’t give legal advice just opinions.

Good Luck,
Tony

4

like csg said, get the h/o to contact the the trustee and see what they are willing to do or not to do.I’ve heard that a lot of times depending on the deal they will release it for a possible sale.