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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Why owners file bankruptcy and why you have to wait 'til after the auction to buy from the lender. Posted by Ward-CA- on April 18, 2002 at 6:55 AM In Reply to: Re: Buy from the current owner or wait for the auction posted by Paul on April 17, 2002 at 9:02 PM : What good would the owner of the foreclosed property have by declaring bankruptcy? : Would it be better is an investor paid bought their house from them before it went to the bankrupcy cour hearing? Or would declaring bankruptcy help them? thanks again : : : There is a foreclosure home that was going to go up for auction. The owner declared bankruptcy. Can I just by the home from the lender? Can I buy the home from the lender before the auctoin? Can I buy from the lender when the first payment is defalted from the owner? thanks =•=•=•=•=•=•=•=•=•=•= Paul, A bankruptcy temporarily stops a foreclosure and any other creditor remedy until the creditor can persuade the bankruptcy court to allow them to continue on with their recovery actions. So if the owner has no equity, but wants to stay in the property as long as possible because it’s free, then they will file a bankruptcy. Even if it just buys them a month or two more of free living, it’s worth it to some people. On the other hand, maybe the owner only needs 15 more days to complete her refinancing or resale, but yet the foreclosing lender won’t give her the extra time before having the auction sale, then the owner can force the lender to wait by filing an emergency petition in Chapter 13 to garner the extra time needed. We went over this point earlier, and that is that the lender can’t sell you the property under any circumstances until they have the foreclosure auction sale and become the owner there for want of any outside bidders. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : What good would the owner of the foreclosed property have by declaring bankruptcy? : : Would it be better is an investor paid bought their house from them before it went to the bankrupcy cour hearing? Or would declaring bankruptcy help them? thanks again : : : : There is a foreclosure home that was going to go up for auction. The owner declared bankruptcy. Can I just by the home from the lender? Can I buy the home from the lender before the auctoin? Can I buy from the lender when the first payment is defalted from the owner? thanks : =•=•=•=•=•=•=•=•=•=•= : Paul, : A bankruptcy temporarily stops a foreclosure and any other creditor remedy until the creditor can persuade the bankruptcy court to allow them to continue on with their recovery actions. : So if the owner has no equity, but wants to stay in the property as long as possible because it’s free, then they will file a bankruptcy. Even if it just buys them a month or two more of free living, it’s worth it to some people. : On the other hand, maybe the owner only needs 15 more days to complete her refinancing or resale, but yet the foreclosing lender won’t give her the extra time before having the auction sale, then the owner can force the lender to wait by filing an emergency petition in Chapter 13 to garner the extra time needed. : We went over this point earlier, and that is that the lender can’t sell you the property under any circumstances until they have the foreclosure auction sale and become the owner there for want of any outside bidders. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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