Tax, SDIRAs & Cost Segregation
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated over 4 years ago,
Seller has active Ch 13 Bankruptcy - Can I acquire Sub2?
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)?