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raerose · May 26, 2008, 05:34 AM

Hi,
I found a "for sale by owner" home that I really want. Prior to putting in a bid, a simple internet search revealed the house was in foreclosure. I asked the Seller and he admitted that he declared chapter 13 the day before it was going to foreclose, thus preventing it from going into foreclosure. He has offered to setup an appointment with an attorney to explain the circumstances to me. I am going to go and listen to everything.
1. What questions should I ask the attorney?
2. Can I find out how much the seller owes the lender(s) now that they are in chapter 13?
3. When negotiating the purchase price should I look at this as more or less of an opportunity as if it had gone into Foreclosure?

ScottGem · May 26, 2008, 05:39 AM

First YOU do NOT ask the attorney anything. You go to that appointment with your own real estate attorney and let them ask the questions. You do not want to rely on an attorney provided by the seller.

I don't believe you can find the balance owed. That should be confidential.

if the seller is in bankruptcy or is avoiding a foreclosure, they will be a motivated seller. You really need to get a sense of property values in the area, before you make a bid. Your attorney can help you there.