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kontry
Oct 1, 2008, 09:16 AM
Can I purchase a house that is under bankruptcy, refinanced by a bank and receive a clear title to the property?

What is the best way to purchase property under bankruptcy?

kontry
Oct 1, 2008, 09:17 AM
Can I purchase a house that is under bankruptcy, refinanced by a bank and receive a clear title to the property?

What is the best way to purchase property under bankruptcy?

Fr_Chuck
Oct 1, 2008, 10:19 AM
The seller will have to get permission from the bankrutpcy court ( if the house is still controlled though bankrutpcy) in this case the owner still owns it, and the bank has the mortgage.

If it has already went though bankruptcy, and/or been foreclosed on, then the bank owns it outright, in which case they merely sell it to you since they own it.

For a home to be bought, the loans on it will have to be paid at closing, so you will make a offer and if it is not enough to pay the mortgage, the bank will have to accept what is called a short sale.

If it is being sold at auction for the bankruptcty then it will be sold to the highest bidder. Most liens are paid off at this sale, expect government ones for taxes and IRS liens, so a title search would have to be done.