In a bankruptcy situation the borrower has taken on more debt that it can handle and seeks the protection of the courts. Foreclosure.com does all the heavy lifting when it comes to locating homes for sale as a result of bankruptcy. We track bankruptcies in these real estate markets because they represent a weak spot in the market in which our subscribers can realize huge savings on their next real estate deal.
Once having filed for Chapter 7 or Chapter 11 of the bankruptcy code, the borrower is protected from harassing calls from creditors. But at the same time he is facing having to forfeit assets, often including his home. Lenders are motivated to work through their borrowers’ bankruptcies as quickly as possible because the process can be lengthy, and they are barred from using robust collection efforts to recover their money. The value of a loan in bankruptcy is sketchy and may have to be written down, or written off. The lender’s motivation is to recover as much of the money it lent to the bankrupt borrower as possible. The homebuyer/investor who presents a reasonable offer that the lender and the bankruptcy trustee can agree upon may have a pleasant surprise. Just remember, find a local real estate agent to help you through the process, they will be the ones that fill out all the documents and make the reasonable offer to the lender/trustee.
Finding properties in bankruptcy can start with a search of bankruptcies in a specific area, such as bankruptcies in a specific county or bankruptcies near me. Also take advantage of the opportunities that can be found on foreclosure.com. We show bankruptcies in nearly every county in every state. Think of working thorough a bankruptcy situation as a win for yourself, and a relief for the bankrupt party and his lender.