Pre-foreclosure Sale With Owners In Bankruptcy

antonf profile photo

Please could someone clarify this for me.
The owners of a property that i'm interested in filed bankrupcy about 14 mths ago and have been living in the property for the last year without having made any payments. The bank took possesion of the property shortly after bankruptcy was filed.
My question is this... do i still have to get permission from the "previous" owners before contacting the bank for a short sale or because the bank now owns the property i can leave that step out?

Thanks in advance

Comments(3)

  • TheShortSalePro21st April, 2004

    You will have to learn more about the arrangement between the foreclosing mortgagee and now owner-in-fact... and the previous owners.

    It doesn't make sense that the former owners remain in posession more than a year after it was purportedly handed over to the bank.

    Sounds more like a Chapter 13... but if no payments have been made... this is confusing.

  • antonf21st April, 2004

    Sorry maybe I confused you.
    The owners that filed bankruptcy where allowed to stay in the property by the bank I presume.
    There are no new owners, the house is standing empty.

    Thks again

  • TheShortSalePro21st April, 2004

    Check with the tax collector's office to determine who has been paying the taxes.

    If the "new" owner, and "owner-in-fact" is the former mortgagee, and the property is an REO... contact their REO department.

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