Seller's Past Bankrupcty Filing

[vmoney 0]

I have a seller that called on one of my mailings. She has a condo she will sell me subject-to for what she owes. She also has a bankruptcy that she filed some time in the last two years. Anyway, not sure how the bankruptcy comes into play here. What do I need to look out for? How can the bankruptcy effect my purchase and subsequent sale?

 

Thanks!!!

[MichaelC 160]

vm, I don't see how it would affect your deal with the seller at all. She isn't applying for any financing, and she isn't buying anything from you. Assuming you do your due diligence and verify the current state of any existing loans on the property, her past credit history should not be a factor for you.

[vmoney 0]

Isn't it possible that the house is under the control of a bankruptcy trustee? How do I verify that there are no bankruptcy-related incumberances?

 

Thanks

[MichaelC 160]

Yes, that certainly is a possibility. The due diligence I referred to includes information on the type of bankruptcy, when it was discharged, and if the property was included in the filing. To verify the property was not included in the filing, ask the homeowner for a look at her filing papers and case number. Get the Trustee's name and verify this directly.

[vmoney 0]

The due diligence I referred to includes information on the type of bankruptcy, when it was discharged, and if the property was included in the filing. To verify the property was not included in the filing, ask the homeowner for a look at her filing papers and case number. Get the Trustee's name and verify this directly.

 

Thanks...you rock!!!

[MichaelC 160]

You're welcome.

And another cool avatar on the board.....