Quote:
Originally posted by Penske_Account
what kind of deed are you getting and even its a warranty deed, how good is this guys warranty and would it survive bankruptcy, i.e. if there is a unperfected lien you might have to worry about it.
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This entire transaction will go through a escrow, will be fully insured, and will be recorded. There are no issues concerning the integrity of the transaction. I have bought fourteen houses where the owner is in distress. On most of these transactions the owner was either in bankruptcy (and had been for a while), had just gone through bankruptcy and went into bankruptcy after the transaction.
Where this property is different is that the homeowner filed bankruptcy right in the middle of my negotiation with the lien holder (the bank that lent him the money). I told them the homeowner could not avoid bankruptcy much longer so they had better give me an offer to complete the transaction. The bank didnh't believe me, screwed around, and the guy went into bankruptcy. Now I can't complete the transaction because the Trustee is in control of the house.
Now the bank is ready to deal but the house is part of the bankruptcy. It will take at least a month for the trustee to organize all the paperwork to determine that the homeowner is upside down in the house and a shortsale would be the best for all players involved.
The Trustee assistance, told me the only option I had to speed up the release of the house was...........A motion to compel abandonment. I have never even filed any motion in bankruptcyu court, and when I practiced law I always asked around for forms (why reinvent the wheel) so that is what I am doing here.
