Home Buying in Washington>Question Details

Baadiyah, Home Buyer in Washington, DC

What Is Sale Is Subject To Bankruptcy Court Approval mean?

Asked by Baadiyah, Washington, DC Mon Aug 9, 2010

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5
The owner has filed bankruptcy and the bankruptcy court will approve or deny your offer. That is why this would be a very lengthy process. Please make sure you have your due diligence before you make an offer. You may be responsible for any back taxes that this owner defaulted on.

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Zaza Pasori | PenFed Realty
2722 Connecticut Ave NW # 72 Washington, DC 20008
T. 202-412-5221 F. 703-716-0017
http://www.penfedrealty.com

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1 vote Thank Flag Link Mon Aug 9, 2010
All are accurate. I definitely recommend working with or getting advice from someone experienced in these types of property. It will definitely save you headaches in the long run.
0 votes Thank Flag Link Sat Aug 28, 2010
Simply put the seller has filed for bankruptcy, they can solicit offers and submit them to the bankruptcy court, where the court was approve any sale of the home and other assets to pay teh creditors. Some lawyers are having sellers file banlruptcy to hold off foreclosure, it gives teh seller time to work out a way to sell the home and sometimes forces the bank who may have styrung them along on a short sale to make a decision and accept teh short sale, or give the seller time to move out and let the bank foreclose or complete a deed in lieu of foreclosure.

For a buyer it means there may be a short delay in getting your offer approved, but it should not be as long as a short sale in most cases. You should check with the Trustee of teh bankruptcy for approximate times of a decision.
0 votes Thank Flag Link Mon Aug 9, 2010
The seller of the home is in bankruptcy court for bankruptcy protection, and the court technically controls all their assets. The court must approve the sale because they are acting on behalf of the seller's creditors to make sure the creditors all get paid, including the original mortgage lender on the property. The court does not have to approve you as a buyer so much, they must only make sure the price is equitable. The process will likely take more time because of this.

Ken
202-309-0935
0 votes Thank Flag Link Mon Aug 9, 2010
The seller is probably in the middle of a bankruptcy and the sale would need to be approved by the court. If you like the home, don't worry too much about that. Just place an offer on it like you would any other home. Just be aware that the sale may take longer than a normal sale.
Web Reference: http://teamlefebvre.net
0 votes Thank Flag Link Mon Aug 9, 2010
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