Can anyone shed some light on the specifics of taking a house sub2, when the house is part of a bankruptcy proceeding after the bankruptcy plan has been confirmed?
Thanks in advance for all the help!
Hi,
When someone declares Federal Bankruptcy Protection they are basically turning their assets over to the court for disposal of anything of value, now certain limitations apply but when leaving bankruptcy your left with one or two automobiles worth less than $5k each depending on marital status, basic home furnishings, tools of your trade and one (1) owner occupied home with less than $25k in equity.
The bankruptcy has to discharge before anything could happen with the home however I seem to remember something about a home sale restriction during the first year after a bankruptcy?
I don’t understand though if the homeowner does not want their home then why not include it in the bankruptcy and move and be over and done with it as for the little bit of equity it doesn’t make sense to try to sell sub2 when they could legally remove ownership by including their lenders in there debt declaration which has to be done and not “re-upping” on the debt?
GR
Good evening,
You can petition the court to remove the home from the bankruptcy. Start by having the sellers bankruptcy lawyer to the paper work.
I pay 2k at closing so the seller was motivated, yes 2k was enough to motivate them.
THe home was in poor shape so it appraised at current mortgage value, I purchased sub 2 rehabbed and resold.
Worked well. The hardest part was having the realtor do the paper work and convince the judge house was being sold for market value. All went well$$$$$$$$$$$
Darin