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Ginger Carney, Real Estate Pro in Sebastopol, CA

Where should I look for the best information on purchasing a home despite the sellers declaring chapter 7?

Asked by Ginger Carney, Sebastopol, CA Thu Apr 10, 2008

My clients are in love with a house, and have put an offer on it. Unfortunately, the sellers are about to declare bankruptcy. The listing agent has been very forthcoming, which I appreciate, however we are both on untrodden ground here. In view of the market we are currently in, this could become more common, so it might be a good learning experience. Does anyone have some helpful words or resources for me?

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I reached the lender's bankruptcy department today. The feedback I got from the bankruptcy department is that I am no longer dealing with their permission and approval. They said that they, the lender, are now at the mercy of the bankruptcy court. I was instructed to contact the bankruptcy attorney my clients are using and request her to submit a motion to the bankruptcy court to have the offer I received on the property accepted. It appears it is now the court's decision, and the Trustee will have a say in whether or not the offer is reviewed and/or accepted. I contacted the attorney via email today but have yet to get a response from her.
So, unless someone else can shed some better light on these type of transactions, I will be referring to them as pre-trustee foreclosures.
0 votes Thank Flag Link Thu Apr 17, 2008
I'm working with a seller with the exact same situation, so let me know what you find out, and I will share the same. Send me an email so we can keep in touch. I'm just now submitting the package to the bank for review. We will have to add documentation from the bankruptcy court once we get to that point.
0 votes Thank Flag Link Mon Apr 14, 2008
Talk to a Bankruptcy attorney. This is not something to fool with by getting "opinions" from Trulia Voices agents, regardless of their intentions. I'd move on! This is the bigger issue about working on properties in foreclosure with qualified, motivated buyers. I explain to my clients that only 3.5% of all sales in Sonoma County last month which closed were short-sales. Regardless of how many are "in-escrow" (that alone is worth a post as most short-sales don't even have an escrow opened until the lender decides to close tomorrow!!) few close. I share with my clients, "If you find a home you really like would you like a 96% change of NOT getting it?"
0 votes Thank Flag Link Fri Apr 11, 2008
Hi Ginger,

It seems like you are going to be very patient. Once this property goes to be a part of the BK, the court will determine WHEN AND HOW MUCH they will sell the property. If your buyers are willing to wait then so be it. Make sure that you are in constant communication with their BK lawyer and if you'll find out who the Trustee is, communicate with them also. Good Luck

0 votes Thank Flag Link Fri Apr 11, 2008
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