I have been following a property for some time. The lender filed the NOD, then NTS and the day before the sale the owner filed BK13. Within a couple of months, the lender filed a motion to lift the stay or adequate protection. Judge granted the motion if the debtor is not current within 60 days. Their plan has not been confirmed. In fact the trustee has filed three objections to confirmation for what appears to be significant issues. The foreclosing lender and one other creditor have filed objections to confirmation because the plan is not feasible.
Based on their BK filings there is zero chance they can pay the arrears in 60 days. I think the objections to the plan are valid and the debtor has only offered that they are waiting for a loan mod.
I have been thinking about approaching the owner to see if they would like to try to sell the house to us to avoid a foreclosure. But I don?t know if they can do that while the house is in BK. The lender has been very aggressive and I think they will foreclose if they get the chance. If their plan is approved and they comply with the payment schedule would that satisfy being current under the conditional motion?
I have waited and watched this long, so I am thinking I will continue to wait and watch. Even when it comes to auction, I suspect that no one else will want it as it will probably not be cheap enough to be a flip.
I appreciate any help on the situation and how to work with a property that is still in BK and if it is worth the effort.