Buying a house in bankruptcy

[Don M.]

Hello,

I own several houses that I rent out, but I have a oppurtunity in front of me that I am unsure about.

A tenants relative called me about buying his house. I did some comps in the area and found out most homes go for 85-90k. I met with him and asked him what he wanted and he told me he needed 52k. The house is in good shape and could get by with 3k of fix up cost.

#1 Problem-5 days before he called me he filed chapter 13

#2 Problem-I've got 2 rehabs going on and I dont want to tie up anymore time on another one right now. Can I buy this house out of bankruptcy with an assigns clause and flip the contract to another investor?

Thanks for your help.

Don

[AaronSOLD]

You really need to talk to a real estate attorney in your state. There's a lot of ways this could go. When you talk to the attorney you should also know who the lien holders are for the property and what is owed.

[ryson Vacation rentals]

You seem to be right in the time frame where it could go either way. Once someone files bankruptcy, they are usually deleting themselves from any liability or responsibility. I am going to a bankruptcy hearing(for a family member) in the morning and the owners of the debt can show up to settle, so there still maybe time before the final bankruptcy has been approved.

[Mike Colpitts]

Wow! Watch out. I've been there and screwed in a BK as a result. BK's are a place where you need very good legal advice when you're even thinking about doing something like this. Good luck with it!