Can they do This?

[Willowdawn]

What is the name of your state? Washington
we have the option of buying a house that is about to be foreclosed. the person holding the contract is in serious default on her owner contract and he wants to foreclose in august. she is now trying to delay the forclosure with a bankruptcy. can she do this?not only has she not paid anything in 10 months, but she failed to follow through with home improvements they agreed on. she even spent $2000 he gave her to do the improvements on other things. are we going to have a chance to buy this house or is she going to mess it all up?

 

[HomeGuru]

What is the name of your state? Washington
we have the option of buying a house that is about to be foreclosed. the person holding the contract is in serious default on her owner contract and he wants to foreclose in august. she is now trying to delay the forclosure with a bankruptcy. can she do this?

**A: yes she can, as once she files BK, there will be an automatic stay on any foreclosure proceedings.
The Seller then needs to file a motion for relief. Once the truth comes out, the BK Trustee will grant the motion and the foreclosure action will continue.
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not only has she not paid anything in 10 months, but she failed to follow through with home improvements they agreed on. she even spent $2000 he gave her to do the improvements on other things. are we going to have a chance to buy this house or is she going to mess it all up?

**A: yes, she is going to mess it all up. Work out a deal directly with the Seller and present your offer to the BK Trustee.

 

[Willowdawn]

New Problem arises

washington.we spoke w/ a bankruptcy lawyer and were told that our city is currently way behind in bankruptcy cases and he believed there was no way she would get a hearing in time to stall the foreclosure. She just called me today and has informed me that she is going to list this house with a real estate agent because she NEEDS to sell this house asap. (she doesnt know we know about the foreclosure) Can she list and sell the house if she doesnt hold a title?

 

[HomeGuru]

Re: New Problem arises

washington.we spoke w/ a bankruptcy lawyer and were told that our city is currently way behind in bankruptcy cases and he believed there was no way she would get a hearing in time to stall the foreclosure.

**A: the person you talked to is an idiot. The mere filing of BK creates an automatic stay, not the date of the hearing. In other words, if she filed BK today and the hearing scheduled in September, the stay would take effect today.
**********



She just called me today and has informed me that she is going to list this house with a real estate agent because she NEEDS to sell this house asap. (she doesnt know we know about the foreclosure) Can she list and sell the house if she doesnt hold a title?

**A: yes, because she is under an installment contract. Although she has no legal title, she is said to have legal equitable title which lenders and courts recognize.
I suggest you make her an offer.

 

[Willowdawn]

ugh

I would make her an offer. Only the actual owner has offered it for 74,000, while she wants 97,000. She said she would take our 74,000 and allow us to make payments on the remainder, but I would much rather wait another 4 weeks for her foreclosure to go through and then buy the house outright for the 74,000. Do you think I am being foolish. I mean, I know its a possiblility that she will sell, but in 4 weeks?

 

[HomeGuru]

If you are a cash buyer or already have financing lined up, offer her $74,000 plus the amounts that she is in arrears.

 

[Willowdawn]

arrears?

does that mean the amount that she owes him? (the original owner)

 

[HomeGuru]

Yes.

 

[Willowdawn]

Good news?!?

The actual owner of the home called us last night and said that the woman claiming bankruptcy on this property has a hearing next Friday. He has hired his own lawyer who will go to the hearing on his behalf to request a forfeiture. What is this, how long does it take and most importantly, is this a good thing? Thankyou for all your help!!

 

[Willowdawn]

One more thing

If she has already filed a bankruptcy on this house and there is an automatic stay in effect, can she still sell it?

 

[HomeGuru]

Re: One more thing

If she has already filed a bankruptcy on this house and there is an automatic stay in effect, can she still sell it?

**A: yes, but the original Seller and the BK Trustee must approve.