purchased home at auction and previous owner filled ch 13 that same day? need advise


#1

So I purchased a CA property at 1:09pm and previous owner filled CH 13 at 10:39am the same day. My question is the following. Has anyone every purchased a home and beat the bankruptcy? What are ways to go around it? Planning to talk to a real good Bankruptcy attorney soon.


#2

If those are the facts, then the sale will be rescinded. BK automatic stay is immediate at the time of record of the BK filing. I would stay away from the trustor and the property and call the trustee to get your money back.


#3

The Trustee will not issue the Deed if they get wind of the Bk before the deed is issued. If it has been issued, you need to call the Trustee, and arrange to get your money back. The sale is VOID.


#4

acutally per my understanding, previous owner had to file before8:00am of the auction date,which realistically mean they have to record that before the end of hours on previous day.

If you want to fight, there are 50/50 chances that you can win. HOWEVER!, many people suggest and I suggest as well, UNLESS it was a homerun case, do you want to spend time and legal cost to fight for it?/ It will take few months and somewhere like 3-7k for legal cost. (i have clients who fought and won.)

So again, technically you can fight and win, but again, if not a homerun case (case you really want to keep), maybe it would be better to let bank rescind the file…

Thank you
SImon Wu
626 589 8822
Advantage Title


#5

Hellos Simon. I purchased a property through trustee sale 30 days ago and I was told the bank is going to rescind the sale but I have not recieved money back, I am just told they have not approved the cancellation yet. They are just holding my money.


#6

You need to get tough! Have your atty. write a “demand” letter to either send the deed within 3 days or send the money back w. 10% interest.
My guess is they are trying to spring themselves free of the bk. on your dime. I definitely disagree w. Mr. Wu. A bk can be filed up to the moment the “hammer drops”. I have been at many sales where the debtor or an atty comes running up at the last moment w. a bk. stamp time stamped 20 minutes before the sale. (When the BK. Court was only a few blocks from the CH.) Now I still see them filed the same morning. I have never seen a Trustee go to sale under those circumstances.


#7

Thanks for the advise. I need a good honest attorney. Do you know of one in Southern California?