Any problems from buying out of bankrupcy?


#1

If you purchase a property at auction from an owner that is going through a bankrupcy are there any problems with evicting them from the property after you have won the auction?


#2

IT CAN BE VERY DIFFICULT TO EVICT SOMEONE THAT IS GOING THROUGH A BANKRUPTCY WHEN THE PROPERTY IS SOLD AT AUCTION. THESE OWNERS HAVE TRIED EVERYTHING TO HOLD ON ( BANKRUPTCY BEING THE FINAL CHAPTER) AND THEY ARE VERY HEART BROKEN. I WOULD LET EVERYONE KNOW THAT BIDS ON A PROP IN BK( HAVE THE FULL STORY ) MAKE SURE THAT ITS OWNER OCCUPIED AND NOT OCCUPIED BY A TENANT. NEW LAW ALLOWS FOR THE TENANT TO KEEP OCCUPANCY FOR A YEAR ( MINIMUM) IN A TRUSTEE SALE. AND ALSO BE CAREFUL HOW U PURCHASE PROPERTY , RATHER YOU ARE A BONAFIDE PURCHASER OR A INVESTOR MAKES A WORLD OF DIFFERENCE.

JUS GIVING MY 2 CENTS

LOREN


#3

No issue in my experience. Declaring bankruptcy automatically stays debt collection, including foreclosures and eviction proceedings. As such the only way the home could have been sold during a bankruptcy is if the lender received a motion for relief from the bankruptcy stay clearing the home for sale, and as I understand it, eviction.

The only time I’ve had an issue with eviction and bankruptcy was when the prior owner declared bankruptcy during the eviction, which happened a couple of times. In one particular case the prior owner really worked the system delaying the eviction by 9 months. Fortunately the market was rapidly rising then, so in the end he did me a big favor.