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Updated over 7 years ago, 07/31/2017

User Stats

256
Posts
64
Votes
Morris Lucas
  • Rental Property Investor
  • Atlanta, GA
64
Votes |
256
Posts

Buying A Property from Owner in Bankruptcy?

Morris Lucas
  • Rental Property Investor
  • Atlanta, GA
Posted

So, I have been researching a house for over a year that had been vacant, and finally tracked down the owner through a skiptrace company. He told me the house originally mortgage was free and clear, but he took out a home equity LOC. He then filed bankruptcy and left the house pending foreclosure.

Deed is still in his name, but when i asked about possible shortsale, he said he wanted nothing else to do with the house and didn't want to pursue anything further. Of course the bank holding the note,(BofA) says they have no record of the property(probably because they never processed and acquired the deed)

Is there any way to get to make an offer on this property or will it probably just sit in limbo forever? Maybe speak to a bankruptcy attorney who may know the process? I've noticed this scenario with a few other vacant properties i have found.

He also mentioned there may be unpaid taxes on the house. i'm wondering if buying it as tax lien may be a way to "force" the bank to take action, as they will either pay the lien or forfeit the property.

Thanks!

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