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Question:
What do I need from the Bankruptcy Court
in order to close a deal when the house
is in a Chapter 7?
Answer: One of
three documents should be sufficient for
your attorney to do a legal and proper closing.
(1) a Notice of Dismissal
of the Chapter 7 or
(2) a Notice of Discharge
of the Chapter 7 or
(3) a Notice of Abandonment
from the Chapter 7 Bankruptcy Trustee.
The Notices of Dismissal
and Discharge indicate that the bankruptcy
case has ended and therefore, the Seller
can sell the property. The Notice of Abandonment
indicates the Trustee has no interest in
the property and that, therefore, the Seller
is free to sell it.
Success
Story, from a subscriber
Hello Caryn, Mark. I just "got
the deed" and a contract to purchase
a Post-Bankruptcy Report property
with plenty of equity! ARV on the
property is $135,000, rehab figures
are $7500 on a retail sale and only
about $2500 if I keep it for rental.
The first mortgage balance is $72,000
and the second mortgage (HELOC) has
already issued a charge-off. All I
have to do is get written notice of
that charge-off and I'm good to close.
THANKS!
An Excited Subscriber, Atlanta, GA |
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