Trying To Buy A Property In A Bankruptcy Estate

[marty_333]

I have been trying to purchase a property since July '07 and finally got the remaining title issues cleared up only to find that the owner of the property filed for Chapter 7. I've spoken to numerous lawyers, but no one seems to know how to get the property out of the bankruptcy estate so that I can purchase it. There is no equity in the property as I had to obtain a short sale agreement from the mortgage holder. The trustee is insisting that the only way to get it out prior to discharge at the end of the bankruptcy is to purchase it from the estate, but that there needs to be a carve out of funds for the estate. To make matters worse the bank won't discuss the case with my lawyer since the property is in bankruptcy. Shouldn't either the owner or the bank be able to file a motion to get the property out of the bankruptcy estate so that I can purchase it? Who should be the one filing the motion? If it is the owner, how is he supposed to file a motion when he has no money to pay a lawyer?

[Ladynred]

no one seems to know how to get the property out of the bankruptcy estate so that I can purchase it.

The Trustee is in control of the property. If you want to buy the property, you have to pay the Trustee. However, the Trustee is going to take as much as he can to pay the debtor's creditors.

Shouldn't either the owner or the bank be able to file a motion to get the property out of the bankruptcy estate so that I can purchase it?

No, that's not how it works.