Good luck to you,
It's good to know that the BK is discharged and home is not part of the BK anymore. Sellers Bank has also sent an order for the BPO do be done. Seems like things are moving in the directions that you want. Now be patience, give time, let the agents do their part and thing will fall in your favor and you get the home of your choice for the price you want!
Good luck to you.
If I were your agent, I would build a case for your offer. I would send in a Comparable Market Analysis which supports the offer as within market value. I would highlight any deficiencies with the home that you are willing to overlook, which if placed on the market would require the lender to spend some money. I would emphasize your that you are ready, willing and able to buy with financing in place, no home to sell, no significant contingencies and will close at the earliest available date.
If your offer is within a reasonable percent of the middle of the market range, you stand a good chance that they would proceed with you rather than run up additional expenses.
I have to give you a word of caution though, what seems reasonable, logical and sensible to the average person may not be to the bank. Banks logic is not our logic and there is always a chance they will be unreasonable and even act in a way which seems against their own interest. I wish you the best, but want you to be prepared for anything.
I am also seeing sellers resort to mortgage fraud while selling their homes short.
Dan, I agree. The chances are not on my side anymore.
Your agent should be your primary adviser here; they have more facts and know your market. Based on what you've said, if the bank takes the home in Deed in lieu of Foreclosure, they will own the home. Once they own it, they will decide how to proceed. Your agent can try and contact them to see if they will consider your offer prior to listing the home, but I'd say chances are not on your side.
From the collective experience we have on this board, what do people think the chances are that I may still be able to get the home?
Regarding walking, it really depends on whether the home was included in the BK and how bad you want this house. You may be able to leave it, while you start to look at other homes to see if something you like better may come along. In the situation I referred to earlier, we did eventually get out of BK and complete the sale of the home, it can happen, but not quickly that is for certain.
Although I am not an attorney most would file Chapter 7 if they qualify however if they make too much money or have other assets that cannot be protected with Chapter 7 they may chose Chapter 13 which allows them to have the amounts they owe (reduced sometimes) and they have to make payments on a schedule they and the courts decide is fair
What is the typical type of BK that sellers opt for in these cases?
One thing is clear from all the responses that I need to walk if the sellers have included the home in the BK. (?)
Check with your agent to see hat the bpo or appraisal came in so you can see where your offer sits.
Now a days with lots of changes even in Bankruptcy laws, a bankruptcy attorney can better advise what are the options sellers and buyers have.
Sellers may or may not have included the property that you are buying in the filling of bankruptcy. The automatic stay goes into effect upon filing the petition, creating a legal barrier to collection actions by creditors. If sellers have included the property in the debtors, sellerâ€™s bank may not be able to foreclosure on them until the bankruptcy is discharged.
Here are simple options I would take if I were in your position.
â€¢ Ask the sellerâ€™s agent if sellers have included this property in the filling.
â€¢ If the property is included in the filling, the waiting game is very long, unknown, depends upon how the
sellerâ€™s attorney is handling the case.
â€¢ I would see how much of a good faith deposit I have in escrow.
â€¢ I would get most of my funds released and keep only $2,000 or less in escrow and wait for the
discharge of the BK, if I really love that home and I am attached to it without even moving.
â€¢ While waiting I would keep my options open for another property in the similar neighborhood for similar
â€¢ When I find another replacement property, I would buy another property right away.
â€¢ If my financial situation allows, I would wait, keep and eye on the happening of this transaction and buy
this home as a second property/an investment
It is recommended that you seek an attorney's advice.
Good luck to you,
How far along were you in the short sale process --- was short sale approval already granted and have you opened escrow?
If you're still waiting for short sale approval and you haven't opened escrow yet, then the seller filing for bankruptcy has just disrupted the whole process. It may be best for you to find something else than to be embroiled in the middle of a purchase on a house where the disposition is, at best, in question.
This happened to one of my co-workers whose buyer was in the middle of the short sale process when the sellers filed for bankruptcy. At first, the buyers thought it may be worth it to fight for the house --- but they were dissuaded by the time and expense involved where there were no guarantees.
if in doubt --- consult your attorney and weigh your options and your desire to own this property.
Step one in these situations is to get out your contract and read what it says. You may have the right to withdraw your offer anytime prior the lenders approval.
You need to find out if the Seller included the mortgage in his BK. It may be that he filed for other debts and kept this out. I had a seller do the same thing a few years ago, but he included his mortgage in his BK. It stopped the negotiations and we had to resubmit. The buyer waited 18 months from start.
At this point you need to find out a lot more information before you make any decisions. Hopefully, the home was kept out of the Bk and you will get lender approval soon. If not, you might be better off finding another house.