Updated almost 6 years ago on . Most recent reply
Pocket listing possibly going to bankruptcy
I have a lead on a pocket listing. I’ve been talking with the agent for a couple months now. The seller is very eccentric to put it mildly. He has a portfolio of properties that he has abandoned. One is a six unit complex with only two units paying. Two others have squatters and two are vacant. Looking on the tax records he has not paid 2019 taxes. I’ve walked the outside of the property and spoken with one of the paying tenants. She is the one who gave be the info on the other four units. Working through the agent we’ve been trying to do inside inspections. At this point in the process Covid-19 hit and seller stopped responding. The agent says she has been unable to reach him for 8+ weeks. He has two other duplexes to sell as well. An associate of mine will buy one, I’ll buy the other duplex if I get six-plex.
I’ve been hounding the agent weekly. Today I find out through agent the seller is headed to bankruptcy. I fear things are going to get real messy once the courts and banks get involved. From what I can see none of these properties have liens but he owns a bunch of others. Only lien I see is 2019 taxes. Any ideas how best to approach this? I’m pushing agent to sell pre-bankruptcy. He might be able to use the cash to avoid bankruptcy. My guess is this was his original idea. Agent says he is severely depressed and might be giving up.