bankruptcy not showing on title search

[Mike Mitchell]

I recently bought a title policy on a house that I'm purchasing subject to the exising loan remaining in place. As I was about to close, the seller mentioned that things have been really rough since he declared bankruptcy on 10-17-09. This is not his primary home, he had been using it as a rental. It seems to me that since it's a secured debt, it will be held up in bankruptcy proceedings even though there doesn't appear to be a chapter 13 lien on it as of right now. Any thoughts?

[Michael Quarles]

If your title company is willing to issue a title policy and you haven't defrauded the title company then you should be good to go...

I would memorialize your concerns with an email to the escrow offer...

Something like; FYI the seller of property address I believe filed for bankruptcy protection last year...

The last house I bought which was included in a BK their attorney requested it to be set outside of the BK. and I closed escrow.

Congrats

Michael