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cgatzek · Jan 8, 2007, 01:15 AM

I want to buy a house due to bankruptcy. Iwas asked to register by sending 3% of the amount of the house, appear in court on Jan 17 and bid. If I win the bid, in 10 days they want the loan closed. It's no contingencies in any form so I need to gamble the inspection fee before bidding. If I win the bid and closed the loan in 10 days, is the house mine already? No more waiting or another obligation to the court? Who pays the taxes and closing cost of the seller? Are they my obligation also?

Connie

Fr_Chuck · Jan 8, 2007, 06:37 AM

I have not heard of that type of sale for bankruptcy, normally they have the sale at the court house steps in all areas I have ever lived at. Public and everyone just bids. I have never heard of having to pay a 3 percent to be able to bid. They normally expected a percentage at the time the bid is accepted. Maybe rules have changed since I went to them

In all of these that I have went to the buyer pays all closing costs and assumes all tax liability on the property. ( so check the records) The property is bought as is, and you are expected to have funding available to pay the balance when due.

But remember there is not a lot of closing costs, there is no home inspection, there is nothing but the court writing you a deed after you pay them.
The idea is you have the cash on hand to write them a check at closing, and then they merely write you a deed. ( at least this is what I have seen done, have not done these in about 5 years)

ScottGem · Jan 8, 2007, 07:25 AM

I agree with Chuck that this sounds strange. Normally you buy at a FORECLOSURE sale where a mortgage lender has foreclosed on some properties and is now putting them up for sale.

A Bankruptcy sale sounds more like the home owner trying to sell the property BEFORE it forecloses. It may be that he is disposing of his assets as part of the bankruptcy. The 3% entry fee sounds like he is trying to weed out non serious buyers (plus make a little more money). Maybe it's the court ordering the sale of an asset to satisfy creditors.

In any case you mention a court so I'm assuming this is the Bankruptcy court and the sale is legitimate. There should be minimal closing costs then and the act of closing means the transfer of ownership. If you have any other questions, ask the court or court clerk.