I keep seeing owners in foreclosure deed property to individuals with ongoing bankruptcy proceedings. You will see them deed them an interest in the foreclosing property a couple weeks or days in advance of the auction sale date. It is obviously a fraudulent bankruptcy protection play to delay the sale.
Most trustees will postpone if they come across any BK activity even if it appears to be blatantly fraudulent. But, in rare circumstances, the BK is filed minutes before the sale and the trustee doesn’t catch it and sells the property. Does anyone have experience buying a property in this situation and proving to the trustee the BK was fraudulent so they don’t rescind the sale??