Ask Experts Questions for FREE Help !
Ask
    kontry's Avatar
    kontry Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Oct 1, 2008, 09:16 AM
    Purchase bankrupt property
    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's Avatar
    kontry Posts: 2, Reputation: 1
    New Member
    		  
    #2

    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's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
    		  
    #3

    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.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Purchase of property [ 1 Answers ]

Hi, A property was purchased (house) for approx $15k and it was then sold for approx. $84,000, how would I record this transaction. Would I set the purchase of the house up as an equity account?

Lien agreement on purchase property [ 3 Answers ]

There is existing lien agreements(5) to a property I want to purchase. These lien agreements are for "Agreement for Improvements in Public Right of Way Ordinance #### " . It looks like these agreements were placed on the property when they converted it to commercial property. There are (5)...

The purchase of property with a lien [ 2 Answers ]

What if I had purchased an item that may have had a lien on it, who is resopnsible for the lien? Province of Manitoba.

Property purchase [ 1 Answers ]

I recently bought a mobile home through owner finance on payments for seven years. How do I get that included onto my credit report as an active entry since I did not go through a finance company? Will this entry help my credit score improve?

Purchase of Property [ 2 Answers ]

I would like to know what the journal entry would be for the purchase of a Property. This property was purchased in cash with private owners funds. Should I account for the Building and Land Separately? And since the cash paid was the owners own funds, what would be the account to credit?

View more questions Search