Bankruptcy Marketing
If I want to find motivated sellers, which chapter of bankruptcy prospects should I market to?
Chapter 7
Chapter 11
Chapter 12
Chapert 13
Is it best to market towards those who have filed, or those who have been discharged or dismissed?
Just curious, I don't know much about the different chapters of bankruptcy.
JB
[addsig]
I am not familiar with a chapter 12, but Chapters 11 and 13 are just a stall to pay off the creditors. Essentially a prelude to chapter 7. Chapter 11 could last 2 years, and chapter 13 means there is still hope.
It would go in this order. File chapter 13 to hold off the creditors, then a chapter 11 to finalize before a chapter 7 to liquidate.
If you are serious about marketing them, you may want to contact the bakruptcy attornies as they are the ones that will have the information first. Also dont forget that you could essentially make a deal with all the creditors for pennies on the dollar and own the property even cheaper. This is a field for the negotiators that dont mind a court room. If you fit that description you will do well. I personally would market the chapter 11 and 7 and forget about the chapter 13 people entirely. Also if it is filed it is active, dismissed could mean going to a different chapter (11 or 7) discharged would mean that they arent in danger anymore, so arent desperate.
Good Luck,
Kyle
First of all you will only want to deal with Chapter 7 and 13 . These are the chapters used by invididuals. I focus on primarily on Chapter 13 because it is typically used by people in foreclosure, but it really doesn't matter.
Bottom line is many inviduals who file for bankruptcy get dismissed by the court for failure to meet certain requirements (i.e. make payments to creditors). If you want to find truly motivated sellers find those people who were in foreclosure filed for bankrutcy protection and then were subsequently dismissed by the court. Sometimes the court will even restrict these people from filing bankruptcy again for 180 days. These people are in a pretty bad predicament. They cannot stop the upcoming auction and will have a tough time getting any loans with a recent bankrutpcy on their credit record.
You can actual track bankruptcy cases by signing up for PACER. Pacer stands for Public Access to Court Electronic Records, and is offered by the Federal Court. Through it you can literally view all documents pertaining to any case in the federal bankruptcy court. Registering for access is free and usage costs are very low. Send me your email and I will send you the URL. I find those homeowners in foreclosure who have filed for bankruptcy and then track these cases. When I see that the case has been dismissed, I go knock on the homeowners door and see if they are interested in selling. Hope this helps.