Bankruptcy

[Trey Bolen]

George,

Does a homeowner have the option to sell their house if they are currently in bankruptcy? If they do not, then as an investor are you just looking to get your name in front of them knowing that a large percentage of them will be dismissed?

[Roy Martin]

Trey:

Can't tell you about all bankruptcy actions, but I'm working with a homeowner who filed bankruptcy to delay a foreclosure so that they COULD have time to sell their home. The attorney and trustee need to be notified by the homeowner (in my case, at least) so that the foreclosure is further delayed. I'm writing the offer to initiate a short sale since one of the homeowner's problems is that they are upside down on their mortgage. I guess in your case it depends on whether they really want to sell their home and move or want to stay in it.

Hope that helps a little.

Roy

[George Roddy]

Trey

Yes. Owners in bankruptcy can sell their properties BUT they have to get approval from the bankruptcy judge. It delays the acquisition process but can be done. The only problem is when a homeowner has alot of equity some creditors might raise the notion that the proceeds should go to payoff delinquent debts instead of going into the owners pocket. In my opinion, most judges will approved the sale and let the owner profit from the transaction if the property sale was their homestead.

Thanks for the question.

Coach George