How can I purchase a Bankruptcy house in limbo?

Asked by Davidd73, 14625 Thu Aug 2, 2012

I found an REO home that's not yet listed. The bank said that they would be willing to do a short sale but I had to contact the owner of the house.
Went that route first because I couldn't find the owner.
Then managed to find the owner, and she said that it was in part of a bankruptcy and had nothing else to do with the home..
What other steps might i take to try and purchase the home? If any?

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Steve Quintana’s answer
Steve Quinta…, Agent, Albuquerque, NM
Fri Aug 3, 2012
The answers you have now from the bank and the owner do not add up. There are several possible routes to getting this house:

1. Ask the owner to sign over her rights.

2. Look at the Bankruptcy file to determine the property's status, i.e. part of the estate, abandoned by the estate, etc.

3. Contact the Bankruptcy Trustee for more information.

4. Check the local court and filing records for action on the property.

A full blown investigation will only take an an hour or two if you focus on the original source entities I named above.
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Thank you for the information. I found the bankruptcy file online,It was a chapter 7 and the mortgage for the house I am looking at was included in the bankruptcy. Which was closed in march of this year.
And the local court showed no other filings for the house.
which puzzles me as to the bank's REO department saying that the woman still owns the house.
Flag Fri Aug 3, 2012
James Gordon…, Agent, Hamilton, OH
Fri Aug 3, 2012
That could be a problem. At this point the property sounds like it is not a REOYour only solution is to have the owner agree or wait for the forclosure to happen and when it becomes a REO purchase the property.
If the owner has decided to go the bankruptcy route and has abandoned the property they need to understand that any work orders or fines on the property will fall on them until the deed transfers. I have been down that road with sellers before and in one case when we got to the point of doing a short sale the owners had over 1000.00 in misdemeanor fines plus assesments levied on the property.
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