If a home is in bankrupt, Can it be sold by the owner without the bankrupt court permission?

Asked by Ttaylor, Haynes Area, Nashville, TN Mon Dec 21, 2009

i want to buy a house but was told it was in a bankrupt.

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5
James & Step…, Agent, NASHVILLE, TN
Tue Dec 22, 2009
Agreed. If the owner of the home is in bankruptcy the court will most certainly have to approve the sale. Now, if the home is in foreclosure - that's a different process entirely.
0 votes
, ,
Mon Dec 21, 2009
Definitely speak to a bankrutcy attorney in your state, but generally when a home is included in a bankruptcy the homeowner can't just sell it.

Any potential sale would have to go through the court. All the current creditors involved in the bankruptcy would be consulted with and would have to approve the sale. I have seen this done a few times.

There is no way to buy it with proper title insurance and you won't be able to get a mortgage for the home because the court will probably have filed what is called a "lis pendens" which is a notice to the public that action is being taken against the property.
0 votes
J. J. Love, Agent, Nashville, TN
Mon Dec 21, 2009
That may be a question that an attorney should answer....but I will say that with my experience, everytime I have had a house to sell that has an owner in bankruptcy, them court had to approve the sale..the owner had to get permission to sell the house...thanks, JJ
0 votes
Richard Leci…, , Tucson, AZ
Mon Dec 21, 2009
You should check with a lawyer. Each state has different laws about that.

http://rlecinski.longrealty.com
0 votes
Anna M Brocco, Agent, Williston Park, NY
Mon Dec 21, 2009
Why not refer your question to an attorney---are you referring to the seller having filed bankruptcy or a bank owned property.
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