Need your advice please!!! Seller filed bankruptcy!

Need your advice please!!! Seller filed bankruptcy!

Columbus, OH · Member since 2015 · 210 posts · 80 votes

I have been looking for an owner occupied duplex for a while and finally found this one I like. It was a short sale and on the market for a while, I offered the asking price, which is a price that bank can get their money back, still a good deal for me. 

However, the seller agent told us that the seller had to file chapter 7,  and the process was just concluded yesterday. So he doesn't own the property anymore, the bank does. 

My agent told me it would be very hard to find someone to talk to at the bank, almost impossible. But I really don't want to give up on this. I found the bank info from our county auditor site, should I contact the bank? Is there anything that the seller can do at this point? I am not familiar how chapter 7 works. What will the bank do next, proceeding with foreclose sale?? Please, my dearest BP community, I really really need your advice on what to do at this point, thank you so much!!!

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Investor · Austin, TX · Member since 2015 · 43 posts · 25 votes
10y
Call the bank, talk to more than 1 person. Call the sellers agent. Call anyone. Keep calling. Ask questions. You will find out your options.
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  • Investor · Austin, TX · Member since 2015 · 43 posts · 25 votes
    10y
    Call the bank, talk to more than 1 person. Call the sellers agent. Call anyone. Keep calling. Ask questions. You will find out your options.
  • Investor · Daphne, AL · Member since 2014 · 1k+ posts · 242 votes
    10y
    And call your lawyer. Good luck.
  • Irwin, PA · Member since 2015 · 152 posts · 52 votes
    10y

    Just a quick Google search shows Chapter 7 as the liquidation bankruptcy. Some things are exempt (primary residence) but depends on your state as well. You'll definitely need legal help on this one if you pursue it.

    Good luck and keep us updated! Eager to hear how it goes.

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    10y

    1) Forget talking to the bank...total waste of time.

    2) Could be some misinformation...very rarely does title to the property actually go to the bank in a BK 7.  Generally, they still have to do a short sale, or foreclosure.

  • Investor · Hortonville, WI · Member since 2016 · 52 posts · 25 votes
    10y
    If you have a few spare days of your life to waste yes feel free to contact the bank and follow it up the chain to the foreclosure office who will most likely tell you that it is in their files but they won't have a price for it for months and that you should keep checking equator.com for the address (or whatever their website of choice is) Otherwise keep your eyes on it and wait, keep any realtor friends you have checking for it and maybe set some Google alerts. Be prepared to wait a few months to a year for anything to actually show up
  • Columbus, OH · Member since 2015 · 210 posts · 80 votes
    10y

    thanks everyone for your advice, so most of you don't think it's a good idea to contact the bank. I would be happy if the bank continue a short sale, I can still go ahead to make an offer to the bank, otherwise, a foreclosure will be too painful to wait for and go through. 

  • Columbus, OH · Member since 2015 · 210 posts · 80 votes
    10y
    Originally posted by @Wayne Brooks:

    1) Forget talking to the bank...total waste of time.

    2) Could be some misinformation...very rarely does title to the property actually go to the bank in a BK 7.  Generally, they still have to do a short sale, or foreclosure.

     Thanks, so who would have the title in  a BK if the bank doesn't? I was told now that the bank owns it. I would be happy if they continue with the short sale, I can still offer, right? 

  • Columbus, OH · Member since 2015 · 210 posts · 80 votes
    10y
    Originally posted by @Dominic Lucarelli:

    Just a quick Google search shows Chapter 7 as the liquidation bankruptcy. Some things are exempt (primary residence) but depends on your state as well. You'll definitely need legal help on this one if you pursue it.

    Good luck and keep us updated! Eager to hear how it goes.

     Thanks, I will keep you guys updated! 

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    10y

    Talk to the listing agent, stop guessing.

  • Columbus, OH · Member since 2015 · 210 posts · 80 votes
    10y
    Originally posted by @Erin Margaret:

    If you have a few spare days of your life to waste yes feel free to contact the bank and follow it up the chain to the foreclosure office who will most likely tell you that it is in their files but they won't have a price for it for months and that you should keep checking equator.com for the address (or whatever their website of choice is)

    Otherwise keep your eyes on it and wait, keep any realtor friends you have checking for it and maybe set some Google alerts.
    Be prepared to wait a few months to a year for anything to actually show up

     Thanks. What does Equater.com do?, I see it's a website listing distressed properties, but not all of them are there though. 

  • Investor · Hortonville, WI · Member since 2016 · 52 posts · 25 votes
    10y

    A lot of small credit unions in my area use equator to list properties they own it was my understanding that they went there before they got an MLS number but I don't know if that's a fact

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