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 Posted: Fri Aug 26, 2005 2:03 am |
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Quote: Originally Posted by chacha Hi there,
Is this legal,
Buyer A , buys a house for 50,000.00 cash. Makes some changes and gets it appaised for higher than normal property value in that area.
Buyer A sells the house to Buyer B, who buys the house from A via bank mortgage and later declares bankruptcy and pockets the cash..
anything can go wrong ere???
Assuming B is the one who declares bankruptcy:
If A & B knowlingly enter into this buy/sell transaction for the purpose of defrauding the mortgage banker, it would be fraud and jail time.
If A sells at arms length, B defaults on his mortgage the bank will repo and resell the house.
To little information.
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| Posted: Fri Aug 26, 2005 7:40 am |
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Here's the scenario:
I purchased property & added two other (family members) people to the deed. I just filed for Chapter 7 bankruptcy (bankruptcy is discharged, but still awaiting closing of case). The other two people are now trying to sell property and get me to go along with it (since they can't sell without me). They are telling me that they've done this before & that I won't get in trouble. Is this true??? Please help!!!
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| Posted: Fri Aug 26, 2005 11:46 am |
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Hi there,
Is this legal,
Buyer A , buys a house for 50,000.00 cash. Makes some changes and gets it appaised for higher than normal property value in that area.
Buyer A sells the house to Buyer B, who buys the house from A via bank mortgage and later declares bankruptcy and pockets the cash..
anything can go wrong ere???
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| Guest |
| Posted: Sat Aug 27, 2005 2:56 am |
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Quote: Originally Posted by Judge Roy Bean That's not possible. The discharge is the closing of the case. No title company will close on the house until you can show them the discharge order from the court.
Again, until your bankruptcy is formally discharged, the title can't be cleared for a sale.
Hope that helps! Let me explain: My bankruptcy was discharged in June, but my case was taking along time to close. So, I called the court and they told me the Trustee dropped dead about 3 weeks ago and he never filed a "NO Distribution Report" and that I had to wait for them to assign a new Trustee who would then file the report. They said my case can not be closed until that report is filed. So are you saying that is NOT possible to sell property now(to pay off mortgage & debt) and/or later when my case is closed?
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| Posted: Sat Aug 27, 2005 6:52 am |
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Quote: Originally Posted by syolie Here's the scenario:
I purchased property & added two other (family members) people to the deed. I just filed for Chapter 7 bankruptcy (bankruptcy is discharged, but still awaiting closing of case). That's not possible. The discharge is the closing of the case. No title company will close on the house until you can show them the discharge order from the court.
Quote: Originally Posted by syolie The other two people are now trying to sell property and get me to go along with it (since they can't sell without me). They are telling me that they've done this before & that I won't get in trouble. Is this true??? Please help!!! Again, until your bankruptcy is formally discharged, the title can't be cleared for a sale.
Hope that helps!
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