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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Durrett Rule no problem any more... Posted by Ward-CA- on April 10, 2003 at 9:51 PM In Reply to: Durrett Problem? posted by SeanW on April 10, 2003 at 11:58 AM : One of my foreclosure books brings up something I'd never seen before. It claims that for one year after a foreclosure, if the ex-owner files bankrupcy, it is possible for the trustee to reclaim the house (if the court determines that the ex-owner deceptively gave away his other assets, which caused a fraudulent bankrupcy, which led to the foreclosure sale.) : This is called a Durrett Rule, and the book specifically says it does not matter that you obtained a legally valid Trustee's Deed. (It goes on to say that this is rare, and not likely to happen if you paid more than 70% FMV of the house.) : Ward, have you ever heard of this? : (1) Would you keep an eye on PACER to see if the ex-owner files bankrupcy after move-out? : (2) Does this possibility affect your rehab strategy in any way? : (3) How do you think Durrett Rule would be applied if the house was already resold to a retail buyer? (Seems to me the title insurance company would have to handle it, but wondering if the foreclosure investor could be liable...) =•=•=•=•=•=•=•=•=•=•=•= Sean, Durrette has since been overruled by subsequent rulings of the U.S. Supreme Court. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : One of my foreclosure books brings up something I'd never seen before. It claims that for one year after a foreclosure, if the ex-owner files bankrupcy, it is possible for the trustee to reclaim the house (if the court determines that the ex-owner deceptively gave away his other assets, which caused a fraudulent bankrupcy, which led to the foreclosure sale.) : : This is called a Durrett Rule, and the book specifically says it does not matter that you obtained a legally valid Trustee's Deed. (It goes on to say that this is rare, and not likely to happen if you paid more than 70% FMV of the house.) : : Ward, have you ever heard of this? : : (1) Would you keep an eye on PACER to see if the ex-owner files bankrupcy after move-out? : : (2) Does this possibility affect your rehab strategy in any way? : : (3) How do you think Durrett Rule would be applied if the house was already resold to a retail buyer? (Seems to me the title insurance company would have to handle it, but wondering if the foreclosure investor could be liable...) : =•=•=•=•=•=•=•=•=•=•=•= : Sean, : Durrette has since been overruled by subsequent rulings of the U.S. Supreme Court. : Hope this helps. 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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