InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Foreclosure Codes 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 60+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Seller files bankruptcy after you purchase at a discount. Yikes! Posted by jorge on April 27, 2003 at 10:50 AM In Reply to: Seller files bankruptcy after you purchase at a discount. Yikes! posted by David F on April 26, 2003 at 6:52 AM I am not a BK expert by no means, but I see more problems with the proposed solution. I assume a BK trustee, would Have to look at the sale of the property if short prior to the Bk, to determinate if it was a fraudulent transaction, but from the following point of view: Is the bk filer trying to hide assets/equity (IE Deed'ing the property so someone else as a fake sale? ). Getting a note a loan back, etc. it sure looks like some kind of plot. I guess we have no control over what people will do after we buy their properties in distress. But the best protection is make fair deals. Spliting the equity 50/50 with an owner in distress is not an unfair deal. A Bk trustee would have a hard time with me to convince the BK Judge that the sale was fraudulent. If I make sure I have complied with the civil code regarding Equity purchase, give the owner his share in cash or note or both, and also keep my distance from him/her I think I am 90% safe. If the seller pocket the money and try to screw the unsecure creditors. That is fraudulent. In the other hand I really doubt that any lawyer would file a BK for someone that has recently sold the equity of his/her property. Probably this person would be advise to wait at least 6 months or more. The bottom line is. Yes, a person can file Bk "after" selling the equity, but the question is why? Having the alternative of filing Chapter 7 and wipe out the unsecure debt before selling. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : I am not a BK expert by no means, but I see more problems with the : proposed solution. : I assume a BK trustee, would Have to look at the sale of the property : if short prior to the Bk, to determinate if it was a fraudulent : transaction, but from the following point of view: Is the bk : filer trying to hide assets/equity (IE Deed'ing the property so : someone else as a fake sale? ). Getting a note a loan back, etc. : it sure looks like some kind of plot. : I guess we have no control over what people will do after we : buy their properties in distress. But the best protection is : make fair deals. Spliting the equity 50/50 with an owner in : distress is not an unfair deal. A Bk trustee would have a hard : time with me to convince the BK Judge that the sale was fraudulent. : If I make sure I have complied with the civil code regarding : Equity purchase, give the owner his share in cash or note or both, : and also keep my distance from him/her I think I am 90% safe. : If the seller pocket the money and try to screw the unsecure : creditors. That is fraudulent. : In the other hand I really doubt that any lawyer would file : a BK for someone that has recently sold the equity of his/her : property. Probably this person would be advise to wait at least : 6 months or more. : The bottom line is. Yes, a person can file Bk "after" selling : the equity, but the question is why? Having the alternative : of filing Chapter 7 and wipe out the unsecure debt before selling. : : : 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

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction.

Copyright © 1997-2003, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455