Q. Yvonne, I know you said that the cool house I saw online is going into bankruptcy. Isn't that the same as foreclosure? I want that house, it's a really good deal.
A. Well, remember we already know there are some significant repairs to the house. It is always important to take the cost of those repairs into consideration as to whether a house is really a "deal" or not.
As far as this house goes, the owner is going into bankruptcy - not the house. Bankruptcy is a completely different animal than foreclosure. Bottom line - A house in foreclosure is under the control of the bank. A house involved in a bankruptcy is under the control of the court.
In fact, in bankruptcy even the bank (mortgage holder) has no power to sell. The whole bankruptcy proceedings have to be completed before it is determined what to do about the assets like a house. This could take a very long time.
Frankly, I would not waste another minute thinking about that house. It could be tied up for years and the whole time it would be deteriorating and neglected. We already know there are some major repairs that have to be done. Who knows what it condition it will be in when this whole process is complete.
Sometimes a "deal" is really a "lemon" in disguise. We'll find you a better house, I promise.