Sold at an auction then Chapter 7

[Jason Davis]

Hello Everyone, A homeowner in pre-foreclosure reached out to me to sell his house and it's a situation i've never heard of before. Looking for some guidance if i should even pursue it:

Situation: 

• it went to preforclosure
• chapter 7 Bankruptcy filed which stopped proceedings
• The bank resumed foreclosure proceedings after 2 years
• The property went to auction and was purchased (with a receipt and all)
• chapter 13 Bankruptcy was filed by the seller
• The Auction Buyer asked for their money back
• chapter 13 Bankruptcy case was dismissed
• Auction Buyer filed another motion to cancel the refund request and be the buyer of the property
• Bank filed a motion agreeing with Auction buyer

From everything I see, the auction buyer basically owns the property unless:

1. the judge decides to refund them the money and puts it back for auction
2. I speak with the bank and see if something else can be done? (Is this even possible? it's december ... maybe they want to clear their end of year books ... i dunno)

I'll get a lawyer involved if need be but I wanted to get a baseline first, so any help is appreciated.

Thanks in advance!

[John Teachout]

This sounds like a really convoluted situation and probably the only way to clear it up is to ask the court for a clarification of the property's status. ie, was the asset sold or is it still considered to be part of the bankruptcy assets? Sounds like lots of maneuvering going on and in these type of cases, I'd just go elsewhere looking for deals. ie, if you're not already involved, don't get that way.