Bankruptcy Help
Please help with any ideas,
We live in a small town (approximate population 10,000) in Colorado. I saw a foreclosure notice in the local paper about 6 months ago that got my attention because of the size and location. I arranged for financing and planned to be at the auction but it was postponed several times, and then it was cancelled. I talked with the owner a few times about making a deal and have gotten nowhere because he wanted too much.
This past week they told me that they had filed bankruptcy a while back. We have been trying to acquire this property to make into our retirement home. There are lots of foreclosures in town and lots of homes for sale or for rent but none that we desire to have except this one because of its size, location and existing outbuildings.
I think they paid $107,000 for it in 1998 and the 1st is around $84,000 and the 2nd is around $45,000. There is approximately $26,000 in other judgments on the property.
Apparantly they thought the home would appraise at $150,000, but it came in at $103,000.
The property needs quite a bit of work to make it into what we want.
Will the owner be free to sell the property for the appraised value after the bankruptcy? Could it be a short sale candidate?
Any information you can provide will be appreciated.
[ Edited by bergvw on Date 04/03/2004 ]
You'll need for the bankruptcy trustee to agree to abandon it's interest in the property.
Try to control the junior liens, or, wait to bid at the Foreclosure Sale.
Provided that the state's homestead exemption allows him protect any equity in the home, then after the BK is discharged and case close, the property reverts back to the debtor who is free to sell it.... provided that is does not foreclose first.
(To sell it DURING the BK you would need the Trustee to sign fa orm Notice of Abandonment as the previous poster points out)
This can be an EXCELLENT candidate for short sale because he probably discharged the mortgage(s)!
Good luck[ Edited by Utah_Bkatty on Date 03/31/2004 ]