What is a Bankruptcy House and 5 benefits of buying one
Many people that are interested in purchasing discounted real estate overlook a very good source. The U. S. Bankruptcy court often has sales of properties and homes that are included in a bankruptcy filing. These homes are sold in an auction like setting in most cases and manged by a Trustee. The court has the option to place a fixed price on the property when offering it for sale.
Are you curious to buy a Bankruptcy Sale home?
A trustee can refer to different types of entities, but in most cases it is a court appointed lawyer or law firm working with all parties so the lending bank can reclaim the monies lent on the borrower’s loan(s).
Chapter 7 bankruptcy is a total liquidation filing. It requires that the applicants sell all of their assets to cover their debts, including their home. People filing for reorganization bankruptcy, or Chapter 13, do not have to sell their main residence. However, they will be required to sell any second or vacation home to cover their debts.
The bankruptcy court and appointed trustee announces these sales most often through their website. Interested buyers may also visit the Court to see when and if any sales are occurring. At this time, there are no set schedules for sales at the Bankruptcy courts.
5 Key Benefits to Purchasing a Bankruptcy Sale House
Property is free from all tax and lien obligations. The court will not sell the property with any additional debt attached to it.
Ownership is assumed at time of sale.
Homes can be bought at a discount in comparison to full market value.
Homes are in better condition than those that have sat empty due to foreclosure.
Many properties can be easily converted into rental property by offering the current owner an option to rent.
Properties are purchased at the courthouse and are sold AS-IS. Buyers take risk purchasing the property without inspecting them first. The court generally has pictures and a detailed description of the property available.
Most of the courts will require a cash deposit at the time of the sale with the balance paid within a few days. Buyers are encouraged to review the sale policies prior to bidding because they vary from each courthouse.
As an additional bonus, many of the courts will also hold a personal property sale on the same day as the home auctions. Buyers may be able to acquire furnishings and other accessories for their new home at a greatly discounted price.
Take an organized approach to help simplify the process of bidding on bankruptcy sale properties, use the checklist at this location: Click to get the Home Buyers Checklist