Owner Filed Bankcruptcy But Still Sell House?
I am dealing with the seller who had filed bankcruptcy, now is trying to sell the house himself , I dont understand how does this work?
1) Seems like bank owns his house, how can he have right to sell?
2) Someone told me the bankcruptcy does stop the foreclosure, so how much time usually they give? Where can I find the info of bankcruptcy process? (I am in NJ)
3) What is teh benefit for the owner to sell the house since bank already took over it?
Thank you for any advice
Now is the time to do a little research. Check out the laws and customs and then proceed.
I always start with the property owner cause they know wots a happening.
You can sell property but you must get permission from the Trustee or Referee in Bankruptcy. Ask around. When stuck I go into the Trustees office and ask who and what do I have t do to buy this property. Usualy some highly qualified Clerk or Typist will give you the word.
A little different here in LaLa land but pretty standard. Start with him that is in the midst of the whole thing. The property owner. Enjoy.
Lucius
Thank you for advice. But where can I find out the trustee?
BK are handled under the Federal Court System.
Check the white pages, under US government, courts. If several listed, call the office closet to where the property in located NJ.
Do you already have a written contract and acceptance with the seller BEFORE the BK was filed? Or are you still trying to negiotate with the seller?
Cheryl Lopez [ Edited by cheryllopez on Date 07/09/2004 ]
How about asking the seller who his trustee is for the bankruptcy?? Or ask him/her who his attorney is, get ahold of them, and ask if you can buy the property that is in BK. Either the atty or the trustee will be able to tell you the process and what you can do to purchase the property.
It sounds like the property was saved from foreclosure by the BK. Get a release of information authorization from the owner and get in touch with the mortgage co. They will tell you for sure if they own the property or not.
Just get in there and ask some questions.
Foreclosure in TX works like this. Until the house is sold on the day of the auction at the county steps.......the owner of the house (person vested on title and on mortgage) can file bankruptcy (usually per se or himself) for a matter of $250 and get a Federal Bankruptcy Number and then can call the Trustee handling the foreclosure and the Bank and give them the Bankruptcy number and fax them a copy.
That will stop the foreclosure and the Federal government has to step in to evaluate the situation, so all collection processes must stop.....including Bankruptcy. I know......I helped a lot of my clients do this.