Must the trustee approve the sale for it to be a valid sale? Meaning if the homeowner signed over the deed, could the trustee have the deed declared invalid/
Comeback,
a method that we use to buy bankruptcy’s is to have the bankruptcy dismissed by the petitioner and purchased within days of that date...
We have found that many times the amount due the unsecured creditors is so small that it is worth us including that debt in our offer price, which makes it very advantageous to the seller...
Michael Quarles[ Edited by IBuyHousesInc on Date 11/28/2005 ]
Thank you John and Michael. Both of your posts helped. I apologize for the delay of my response. John, if I were to use your method then my question would be if the mortgage company would be able to find out that I purchased the house subject to?
The lender would not be contacted by the court, as far as the lender is concerned if the payments on the property start coming in, they figure the debtor worked things out.
Trustees like to eliminate the stacks of paperwork on their desks so if they are convinced that this is the best way to go for the debtor and chances are they will get court apporval, they just have one less piece of paperwork to contend with.
Not really a big deal, convince the trustee it is the best situation for the debtor and everyone concerned this way everyone wins.
So, I assume, since it stays on their credit as a loan, buying a house subject to is probably not the best way to do it if the seller plans to turn around and purchase another house using a conventional loan since it would look like they were already paying a mortgage?
I have had several sellers get new loans after I bought their houses. What I have noticed is the bank just want to see that the loan is getting paid. It would be like you getting a loan after you own 2 or 3 properties. If you can show that they are rented out etc then bank is happy.
Just a side note. I bought a house from a real nice couple 2 years ago they were not behind just needed it sold. I got it for $10 bucks long story short they sent me a letter and called. They are moving to the Bahammas and have offered their current home to me sub-to again but they need more cash and it is about 3+ hours away. Anyway they have great credit (even better than before) and they trust me. Wish their new home was closer. Good luck
Thank you for your help
Absolutely. The sale must be approved by the Bankruptcy Trustee handling the case.
Would the trustee allow the purchase at below market price? Would the mortgage company be notified of the sale by the trustee?
It depends how much below market value...
A lot depends on the trustee.
The mortgage company would not be notified that you were buying subject to.
The debt (mortgage) would need to be reaffirmed by the seller though.
Must the trustee approve the sale for it to be a valid sale? Meaning if the homeowner signed over the deed, could the trustee have the deed declared invalid/
Yes, that is one of my concerns.
Are you saying that it is one of your concerns, or that you know for a fact that the trustee can overturn the sale?
Comeback,
a method that we use to buy bankruptcy’s is to have the bankruptcy dismissed by the petitioner and purchased within days of that date...
We have found that many times the amount due the unsecured creditors is so small that it is worth us including that debt in our offer price, which makes it very advantageous to the seller...
Michael Quarles[ Edited by IBuyHousesInc on Date 11/28/2005 ]
Thank you John and Michael. Both of your posts helped. I apologize for the delay of my response. John, if I were to use your method then my question would be if the mortgage company would be able to find out that I purchased the house subject to?
David Fair
comeback,
The lender would not be contacted by the court, as far as the lender is concerned if the payments on the property start coming in, they figure the debtor worked things out.
Trustees like to eliminate the stacks of paperwork on their desks so if they are convinced that this is the best way to go for the debtor and chances are they will get court apporval, they just have one less piece of paperwork to contend with.
Not really a big deal, convince the trustee it is the best situation for the debtor and everyone concerned this way everyone wins.
John $Cash$ Locke
[addsig]
Thanks John.
So, I assume, since it stays on their credit as a loan, buying a house subject to is probably not the best way to do it if the seller plans to turn around and purchase another house using a conventional loan since it would look like they were already paying a mortgage?
Kevin
Kevin,
I have had several sellers get new loans after I bought their houses. What I have noticed is the bank just want to see that the loan is getting paid. It would be like you getting a loan after you own 2 or 3 properties. If you can show that they are rented out etc then bank is happy.
Just a side note. I bought a house from a real nice couple 2 years ago they were not behind just needed it sold. I got it for $10 bucks long story short they sent me a letter and called. They are moving to the Bahammas and have offered their current home to me sub-to again but they need more cash and it is about 3+ hours away. Anyway they have great credit (even better than before) and they trust me. Wish their new home was closer. Good luck
boylank.
James is correct, any mortgage broker or banker worth their salt will get your seller financed for another property.
Not really a problem.
John $Cash$ Locke
[addsig]
boylank,
Always answer all questions before they become objections and the seller will have no questions to ask.
Sometimes a seller does question where to sign, but most of the time I just say sign here first, so I do not count that question.
John $Cash$ Locke
[addsig]
You want a power of attorney to convey real estate
the affidavit is a document that says there are no other agreements, lists the date of deed recording, book #, etc.
getitqwik is right: A Power of Attorney terminates once the person dies.
It is not impossible, but it extremely unlikely that her death will trigger the "due on sale" clause in her mortgage.
I forgot that the power of attorney is only for the living.
My apologies.
I forgot to mention that it is always possible for the lender to call the loan due (as in any situation, even if the borrower is still living).
But usually all the bank cares about is that the loan is getting paid.
Get an authorization signed by her with her SSN. Also get a request for payoff amount with her signature and SSN.
Brenda