[Lilia Russell]

Lilia Russell

Hello everybody,

I got a phone call from the lady in bankruptcy. She wants to sell house but I do not know how to go about it if she is in B/Cy. What can be done and how do I go about it. Please share if you have any experience in your practice.
Will appreciate any help. New to the industry
Lilia,

Just spoke with her once again.
Her Lawyer suggested her to sell the house

Thanks for any input.

[Jackie Lange]

Jackie Lange

You can write a contract to buy it or better is to get an option to buy it but you need to add a special addendum that the sale is subject to the BANKRUPTCY JUDGE’S APPROVAL.

Every bankruptcy is assigned to a bankruptcy trustee. Find out who that is. Send them a copy of the contract. The judge will have to approve that it be released from the BK

If there is a lot of equity to be had, the chances are slim that it will be released unless all proceeds to to the seller’s creditors. (which means you make no money)

[Rick Casselberry]

Rick Casselberry

if the state is like FL there might be homestead exemption for all or part of the personal residence including proceeds of sale. keeping it outside the bankruptcy.

[Lilia Russell]

Lilia Russell

Thank you kindly for an answer.

lHello Jackie,

This is Lilia Russel.

After being through many changes that my husband’s employer was playing with we are still here in Maryland for a while.

I being very sick and was not able to do anything.

Recently I was marketing for a while and have a landlord who wants to sell his last rental and willing to hold the note.

He has property listed with realtor and wants me to make an offer and I need your adwise on it as it will be my first deal here.

The prop. listed $159,000 which is an ARV, needs many updates but can be rented in shape it is now.It is 3bed,1,5 bath 1500 Sf rambler, being a rental property for more then 20 years.

He practically begging me to make him an offer as he wants to sell it before the end of the year after having just one offer of $80,000 in 3 months

He suggested he would finance with $10K down and 6% int if I offer close to $140,000.

The market here is very slow and prices still falling down, but for me to rent to own would be tough to get $10K down, it means I can not pay him $10K down.

I wanted to request a Multiple Offer generator as you suggested on Forum.

Would you be kind enough to suggest what kind of different offers can I do and if I will get his agreement on it,

-what other paperwork needs to be in place other than purchase agreement?

– what do I need to have to mention in my agreement to be safe?

-Do I need to talk to a Title co. before I do make an offer to know who will be doing closing and do I have to open an escrow account with my Title co, to hold Earnest money deposit?

Please give me a detailed directions as I want this deal to be properly organized and this is my first one, I have no experience in in yet.

Please , Jackie, You are my only hope.

I am learning a ton from Forum and materials from the site and wanted to thank you once again for such a wealth of great information you share with your students.

Thank you kindly for your help.

Have a blessed day .

[Jackie Lange]

Jackie Lange

Lilia

You do not want to buy this property. The price is too high. It sounds like it is old and outdated. Which means someone, hopefully not you, would need to dump some money in to it to make it appealing to the best tenants.

Tell him, the best you can do (magic words… Best I can do..) is lease the property if I can get permission to sublease to my tenants. Explain that this will give him cash flow. Of course, you should set it up so you only pay him after your tenant pays you. If there is a month of vacancy, you do not want to get stuck with making payments.

I know you may be moving back to canada soon, so you do not want to OWN this property.

His price is way toooo high. You do not need an option to make the deal work, but you could get an option if he will lower his price.

I’m getting tons of leads from Maryland because a lot of people who can move are getting out since the property taxes have gone up so much.

You do NOT want to get stuck with owning this house.

If he will not agree to a performance lease, PASS.

the real estate agent in the middle of the deal complicates things and really increases the price too. So you might wait until the listing is expired.