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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Risky business Posted by Ward-CA- on July 16, 2003 at 5:57 AM In Reply to: sale before bankruptcy... posted by rick on July 11, 2003 at 5:09 PM : I've been reading many postings on this site taht talk about bankruptcy, however, I couldn't find the answer to this question: : If a forclosure Buyer buys a pre-foreclosure, and takes care of all the paperwork, (Equity purchase A., Deed, Affidavit of Deed, Land Trust, assignment of beneficial interest into trust, etc.)and also, takes care of all the back payments, and pays off the second mortgage, then what would happen if after a few weeks that the Buyer has done that, the Seller decides that since he is still behind in many other bills, that he will go ahead and file for bankruptcy. What would then happen if the court orders the Buyer to sign the Deed back to the Seller and declares that it was a fraudulent transfer? Would the money that you paid for the back payments, as well as the money that you paid to pay off the second mortgage be gone? Will the investor, get any of that money back, or is it lost forever? -=-=-=-=-=-=-=-=-=-=-=-=-=- Rick, What do you think would happen? Where do you think the reimbursement would come from for any cancellation involving a pre-foreclosure sale? Since most payments made by the buyer would inur to the benefit of the seller, it seems to me that the reimbursement to the buyer would have to come from the seller, who is broke. So if the seller doesn’t have the money, nor the inclination to reimburse the buyer, I think the buyer would be screwed. That’s a risk the buyer has to assume in this risky business. It won’t occur in every deal, but I’m sure it does occur once in a while. Follow Ups: Re: Risky business J. Brooks 4:24 PM, 07/16/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : I've been reading many postings on this site taht talk about bankruptcy, however, I couldn't find the answer to this question: : : If a forclosure Buyer buys a pre-foreclosure, and takes care of all the paperwork, (Equity purchase A., Deed, Affidavit of Deed, Land Trust, assignment of beneficial interest into trust, etc.)and also, takes care of all the back payments, and pays off the second mortgage, then what would happen if after a few weeks that the Buyer has done that, the Seller decides that since he is still behind in many other bills, that he will go ahead and file for bankruptcy. What would then happen if the court orders the Buyer to sign the Deed back to the Seller and declares that it was a fraudulent transfer? Would the money that you paid for the back payments, as well as the money that you paid to pay off the second mortgage be gone? Will the investor, get any of that money back, or is it lost forever? : -=-=-=-=-=-=-=-=-=-=-=-=-=- : Rick, : What do you think would happen? Where do you think the reimbursement would come from for any cancellation involving a pre-foreclosure sale? : Since most payments made by the buyer would inur to the benefit of the seller, it seems to me that the reimbursement to the buyer would have to come from the seller, who is broke. : So if the seller doesn’t have the money, nor the inclination to reimburse the buyer, I think the buyer would be screwed. : That’s a risk the buyer has to assume in this risky business. It won’t occur in every deal, but I’m sure it does occur once in a while. 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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