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Updated over 4 years ago,

User Stats

21
Posts
1
Votes
Dara Abasute
  • Austell, GA
1
Votes |
21
Posts

Seller has active Ch 13 Bankruptcy - Can I acquire Sub2?

Dara Abasute
  • Austell, GA
Posted

SITUATION: Seller has an active bankruptcy and wants to sell b/c she's relocating. She would negotiate a short sale with lender if necessary, and I'm wondering if subject to is a viable way to acquire this deal or if it even is a [doable, good] deal at all. The trustee she's working with is aware she wants to sell her home. Seller is willing to "discharge" her bankruptcy to get a creative deal done if possible.

DETAILS: 

  • - Seller filed ch 13 in 2019. 
  • - Mtg payoff amt $137K
  • - PITI $917/mo
  • - Lender states borrower is 14 payments behind ($917 * 14 = $12.8K)
  • - ARV $207K
  • - Repairs: none
  • - Avg. Rent: $1300/mo
  • - Seller wants $5K to help with her move

QUESTIONS: How would one structure a subject to in this situation? Will catching up the back payments (and seller paying off legal and trustee fees) to discharge the bankruptcy suffice in making sub2 work? Is a short sale the better route (I've never done one before)?

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