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Updated over 9 years ago on . Most recent reply
Chapter 13 bankruptcy and Subject To
Does anyone know the legal implications of buying a house from an owner who has filed Chapter 13 bankruptcy and the bankruptcy is still active?
Would the seller be able to transfer title to the subject to buyer?
What happens if the subject to buyer makes money from the sale of the house? Would those proceeds go to the bankruptcy debts?
The mortgage was modified in the Chapter 13 bankruptcy? Could this make it difficult for the seller to sell the property subject to?
Most Popular Reply
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Any house purchased that is in a Chapter 13 plan conveys with any and all encumbrances, and the purchasor would liable for the same as if the house were not obtained from a bankruptcy sale. (Absent potential personal liability)