Motivated Seller Filed Bankruptcy

[Blake Pender]

Well I had my first deal ready to go. All contracts drafted and had the green light from the seller to come do paper work. We were buying subject to so I gave the foreclosure attorney a call (Barrett) to get the payoffs but found out he was in active bankruptcy.

Is this a deal killer?

I have not talked to the seller yet, (wanted to ask here first) so i don't yet know what chapter he filed.

Blake

[George Roddy, Jr.]

Blake,

I saw that you post this question on TREIC forum as well. I agree with Gaylene. You will need to get the permission of the bankruptcy trustee to move forward with this transaction. Most likely, the owner just filed but has not submitted his "proposal/plan" to the courts. If the plan is not submitted in 30-60 days after filing then the bankruptcy is automatically rejected and the lenders can recommence their collecting/foreclosure proceedings.

Good luck.