Viola Heights Dr Ne
Rochester, MN 55906

Here is how you can proceed:

• Contact the bankruptcy trustee to find out if the property is for sale as part of the bankruptcy.  If so, request the terms for the sale of the property.
• It is a very good idea to at least drive by the property and visually inspect the property itself and the neighborhood. (Please keep in mind that the owner may still be living in the property and their privacy should be respected) Frequently properties that are tied up in bankruptcy are in need of maintenance. Some may be abandoned. Since the property owner often has no hope for cash after the sale, he or she may have already stopped spending money on the property for even basic necessities such as maintenance of the roof or pool or landscaping.
• Once you have determined that the property appears to be in acceptable condition, and that you can live with the terms the trustee has spelled out, make your offer. Be certain that your offer contains contingencies such as appraised value, property inspections, clear title, and the financing you will need.
• Once the trustee or court has signed off on your offer, have professional inspectors give detailed reports on the condition of such things as construction defects, the roof, insect infestations, mold, electrical and plumbing systems, appliances, and heating and air conditioning units.
• Bankruptcies can present unique problems with respect to title since you will be receiving the deed from the court. Also, when bankruptcies occur, liens frequently follow. This is why using a title agent who understands the fine points of bankruptcy and can insure your title is so important.
• Once you are satisfied with the inspections, and all other contingencies are assured, have your lender give you a commitment for financing.
• When financing has been secured, and acceptable inspections of the physical condition of the property and the condition of the title have been made, have the title agent and trustee schedule your closing.

There are special issues to be considered when dealing with properties that are the subject of bankruptcy. Properties in bankruptcy frequently have flaws both physically due to lack of maintenance, and liens of creditors. There may be a great deal of motivation for the courts to dispose of the property for the benefit of the creditors, which can translate into a good deal for a property investor. When dealing with the courts in the sale of a property, buyers need to be patient as each decision related to the sale has to be approved by the court. However, a patient real estate investor can turn this situation into a sale at below market price.

Read less...