Is It Typical To Pay $$ For Initial Visit With BK Trustee To Do Short Sale?
Cooperative homeowner in Ch 13 BK. Trustee/ Attorney will not speak to me w/o homeowner's "permission" (willingness to pay atty fees). Atty wants me to put out $2k just to talk with her. I really want the property but don't feel right about forking over the $. Any suggestions?
1st, $195,000
2nd, $80,000
RMV, $190,958
BK, Ch 13
Never heard of that. Is it possible that you may have misunderstood what the court appointed bankruptcy trustee was requesting?
What's the homeowner's motivation to participate in a short?
Cindy, something's not making sense, but I think I can shed some light. I specialize in RE investing in bankruptcy properties.
First, I'm assuming that you've contacted the Ch 7 trustee administering the assets of the homeowner's bankruptyc estate. The trustee may require you to obtain an Authorization to Release Info from the homeowner.
The trustee essentially owns the property in a Ch 7 case unless the home was claimed as exempt and/or was "abandoned from the estate" by the trustee.
Here, it appears that the trustee knows there's some equity in property which he is charged with selling. Often, trustees will sell the property subject to the existihng liens for the amount of the trustee's equity, which here, is probably $2000.
Can't say for sure, but it sounds like that's what's going on.
Martin
Dear Cindy,
You did say a Chap 13? not a Chap 7?
Confirm that. Are you talking to the Trustee in Bankruptcy? Or are you talking to the Trustee who is running a forclosure sale on behalf of one of the note holders on the property.
Check it out please and post again.
Enjoy Lucius
It is a Chapter 13 BK. I was TRYING to speak to the BK Trustee attorney and do not understand the $2k.
Now the homeowner has informed me that his attorney advised him that it is not in his best interest to short sale the property to me. It is better for him to let it go to auction as scheduled and have the foreclosure on his record as well as the bankruptcy. Doesn't make sense to me. Apparently his wife has written a book that may generate some income and that is the reason the attorney has made the above suggestion. At this point I hope to buy it at auction on 3/19/04, but am concerned that the 2nd may outbid me there since they have so much to lose. Any suggestions on a good resource to learn more about buying properties out of BK?
Thank you for your very helpful replies and support.
Your deal sounds very similar to the one I am working on.
1st, $201
2nd, $85
RMV, $270
BK, Ch. 7
The BK trustee's attorney was very nice and is doing everything in his power to help me buy this house. He did not ask me for anything up front. However, he made it perfectly clear that the BK trustee would need to see between $5k-10K from the proceeds of the sale for his fee, pay off remaining creditors,etc. So, mine expects it on the back end, not up front.
I was also told that I have to set aside $5k for the seller (who decided to cooperate) for her 'exemption'. Not sure if this is her homestead exemption or what, but I DO know I'm out a total of an additional $15k. Profit is dwindling.....
Hope this helped a little.
Pam