Chapter 13 Bankruptcy-House purchase

[Anna Catron]

6 months ago we offered to pay a woman for her home as she was in Chapter 13 and considering putting it on the market.  It has been the craziest process I've ever seen.  She doesn't know how to move the situation along and the lawyers involved are not the easiest to work with, to put it nicely.   It'll reach the almost 2 percent rule eventually, but at the moment we're feeling deflated.  

Any input would be greatly appreciated!  

Anna

[Andy Mirza]

@Anna Catron The first thing you should do is check PACER: 

https://pacer.login.uscourts.gov/csologin/login.jsf

You'll need to create an account. Then find the bankruptcy court that has jurisdiction over the case. Run a query for the debtor's BK case. If you have the case# it's easier but you can also do a search by first and last name. Finally, check the docket. You should be able to figure out exactly what's been going on with the BK.

Keep in mind that you'll need motivated cooperation from your seller, her attorney, the trustee, and the judge. They need to believe that selling to you is in her best interest and aligns with their incentives. Her attorney is incentivized by fees from work that doesn't cause too much brain damage. The trustee pulls in 10-11% of the debtor's payments. I'm not sure if that extends to proceeds from a sale like this. The judge does whatever he or she wants even if it's not common sense. They get an extraordinary amount of leeway. Good luck!