Bankruptcy Trustee Sale of Real Property

[Souix]

What is the name of your state? Oregon


I posted this on the Bankruptcy forum and have gotten no answers so that is why I'm posting this here.

I have situation where a manufactured home on its own 5 acre parcel has been listed with an out of area realtor. This realtor doesn't seem to have a clue as to what she is doing, so I am asking here to see if she is relaying information correctly with regard to real property sales through a bankruptcy trustee.

The property is listed about $100K less than market and she says the reason for this is that the trustee wants to sell it as quickly as possible. She says the process is, that once all offers are in, then the property goes to auction and the bankruptcy trustee is the one that decides which offer is accepted. She says the whole process takes about 2 weeks. Is this true? Can anyone explain the true process? It seems like the trustee is trying to create some sort of bidding war.

 

[HomeGuru]

What is the name of your state? Oregon


I posted this on the Bankruptcy forum and have gotten no answers so that is why I'm posting this here.

I have situation where a manufactured home on its own 5 acre parcel has been listed with an out of area realtor. This realtor doesn't seem to have a clue as to what she is doing, so I am asking here to see if she is relaying information correctly with regard to real property sales through a bankruptcy trustee.

The property is listed about $100K less than market and she says the reason for this is that the trustee wants to sell it as quickly as possible. She says the process is, that once all offers are in, then the property goes to auction and the bankruptcy trustee is the one that decides which offer is accepted. She says the whole process takes about 2 weeks. Is this true? Can anyone explain the true process? It seems like the trustee is trying to create some sort of bidding war.

**A: it could be true. Generally the Trustee advertises a BK auction and at the time of the auction obtains all the bids. There may or may not be an upset price.
In a BK sale the Trustee is god and as long as the laws are followed can dictate when, where, how and to whom the property will be sold to.

 

[Souix]

Re: Re: Bankruptcy Trustee Sale of Real Property

**A: it could be true. Generally the Trustee advertises a BK auction and at the time of the auction obtains all the bids. There may or may not be an upset price.
In a BK sale the Trustee is god and as long as the laws are followed can dictate when, where, how and to whom the property will be sold to.

***Ok thanks for responding. Seems like they should have the auction first though. Then they wouldn't have the added expense of paying a brokerage fee.

 

[HomeGuru]

Re: Re: Re: Bankruptcy Trustee Sale of Real Property

***Ok thanks for responding. Seems like they should have the auction first though. Then they wouldn't have the added expense of paying a brokerage fee.

**A: the auction is only one way to sell t he property. The BK Trustee can indeed hire a real estate broker and sell the property the traditional way. There is a time contraint though and that is why the price is discounted for a fast sale.

signed,
Bob Cat

 

[Souix]

Re: Re: Re: Re: Bankruptcy Trustee Sale of Real Property

**A: the auction is only one way to sell t he property. The BK Trustee can indeed hire a real estate broker and sell the property the traditional way. There is a time contraint though and that is why the price is discounted for a fast sale.

signed,
Bob Cat

**The time constraint being the 2 week period? Do the purchasers get to go through their escrow process? Inspections etc. or is there a strict time restraint on that too? In this particular case we can't even enter the property because someone is living there illegally, there is no real estate sign and there is some sort of notice on the front door that no one can read because of the place being occupied.

Another question: How do you evict someone if their tenancy is illegal? I'm told this person is a "squatter" and not the original owner.

 

[HomeGuru]

Re: Re: Re: Re: Re: Bankruptcy Trustee Sale of Real Property

**The time constraint being the 2 week period?

**A: yes, because the BK Trustee is "running the show".
*********

Do the purchasers get to go through their escrow process?

**A: no, there is no escrow unless the BK Trustee agrees.
Once the Buyer is slected, the Trustee wants the cashier's check in exchange for a Trustee's deed to the property.
***********
Inspections etc. or is there a strict time restraint on that too?

**A: all inspections, investigations etc. must be complete withing the time period. Basically this is an "as-is sale" similar to a bank foreclosure or tax sale.
***********

In this particular case we can't even enter the property because someone is living there illegally, there is no real estate sign and there is some sort of notice on the front door that no one can read because of the place being occupied.


**A: that is why the sale is an as-is sale then with no inspections.
So it is a Buyer beware caveat emptor transaction.
***************
Another question: How do you evict someone if their tenancy is illegal? I'm told this person is a "squatter" and not the original owner.

**A: the Buyerwould file an unlawful detainer action once title is granted or the BK Trustee could evict under his/her power.

 

[Souix]

Ok now I am really confused. So basically what you're saying is that the purchaser has to be ready with the cash in the form of a cashier's check at the time the trustee is ready to accept the offer? No title search gets done? No closing statements are prepared? No appraisal is ordered? No inspections are done?

The reason I'm so interested is I want to buy this place, but I probably won't now with all this "buyer beware" stuff.

 

[HomeGuru]

I suggest you talk with the BK Trustee and get the facts.

 

[Souix]

I suggest you talk with the BK Trustee and get the facts.

Ok thanks, but I'm afraid I would have to go through the listing agent for that, being that it would probably be unethical for me to speak to the seller directly.

 

[HomeGuru]

Yes, you are correct. I forgot about the listing.

 

[Souix]

Now that I think about it, it makes sense to me that the BK trustee would rather accept cash in full without any contingencies than someone that had to go through a lender for another 30 to 60 days. So it appears the one with the most green stuff wins. Thanks for letting me see the lilght!

 

[HomeGuru]

You are welcome. You were supposed to have gone to church yesterday to see the light. Were you doing a listing presentation instead?

 

[Souix]

You are welcome. You were supposed to have gone to church yesterday to see the light. Were you doing a listing presentation instead?

**Oh did I type "light"? I meant to type "lilght", its an acronym for "learning ideas legally grants higher tenure"

 

[HomeGuru]

Thanks for being so light-hearted.

 

[Souix]