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Updated almost 4 years ago,

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2
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Casey Haynes
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2
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Buying a Property where owner filed bankruptcy

Casey Haynes
Posted

So, this is my first post on bigger pockets. I just recently became a member. If I have done something wrong, please let me know!

I know there are some old posts out there on this topic, but I wanted to reach out again to see if there are any updates or answers anyone has come up with. 

I have been looking at a property for about 6-8 months now and it seems to be tangled up in a pretty big mess. The deed states three ladies as owners: one is the daughter, one is the deceased wife, and one is the deceased mother (none of whom are on the mortgage). The lender (USDA) has the father as the sole borrower. 

In summary, the daughter is the only living relative on the deed. The father filed bankruptcy on the loan. (Chapter 13 I have been told by the daughter). The father wants nothing to do with the house, and his relationship with his daughter is not the best. She tells me that she does not want to talk to him and he does not want to talk to her. She has given me his phone number, but I have not called him yet as I want to make sure I have "all my ducks in a row" before I do. 

The daughter told me she has talked to the lender and tried executing a quitclaim deed but they told her they would not accept it as the loan is tied up in bankruptcy. From what I have read, I believe I need to get in contact with the father to see if I can politely get him to authorize the release of information so that I can talk to the lender to get details on the loan??

This would be my first house purchase, and although I know this one seems tricky, I believe its an excellent opportunity to learn that could also possibly provide me with a house that fits my needs. 

Any help/insight is more than appreciated. I thank you all in advance.