Part (1/4)
INTRODUCTION
For anyone looking to purchase real estate from bankruptcy, our database is an invaluable resource. To eliminate any confusion, we do NOT provide a database of foreclosure or REO properties. Instead, our database allows you to search and access cases where a homeowner (now debtor) has filed for bankruptcy and where the trustee believes there is enough equity in the property to sell the real estate and obtain a return to unsecured creditors.
The bankruptcy trustee has a fiduciary duty to maximize the estate’s return to its creditors. Therefore, while in most cases a sale motion only gets filed after a stalking horse bidder has been identified, that should not discourage you. If you are interested in the subject property and want to make a higher and better offer, the courts will accept it in most cases. Remember, this is a legal process, and there is a duty to maximize the return to creditors.
With this understanding, you can use our database to find bankruptcy real estate of interest to you very quickly. Since we comb through the courts across the country and identify the sale motions filed, you need only run a quick search to find what you’re looking for. From the sale motion, we categorize the type of asset being sold such as residential real estate. To find those assets, our subscribers navigate to the Assets section of our site (top navigation), select Real Property > Residential as the image below shows.
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From here, you can refine your search further by the location of the asset, or the court that has jurisdiction over the asset being sold in, etc. SETTING UP ALERTS At this point we advise setting up an alert for the specific type of asset you are interested in. This way the information comes directly into your inbox saving you more time. For example, if you are interested in residential real estate in Texas, you can set up an alert for that, and you’ll receive an email every time we add something new to our database that matches your criteria. You can set alerts in the left navigation by clicking the “Create alert” button. ASSET DETAILS Once you find an asset that looks interesting, you can click on it to learn more. |
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As the above screenshot illustrates, we summarize key facts obtained from the sale motion. In the top right corner we provide the seller’s name and contact information including their email address. We also provide the case title and number with a link to access the docket on our site. This allows you the track the case or engage in further diligence. To the left under the image, you will find the attached source document(s), namely the sale motion. The sale motion is the legal document filed with the courts describing the sale including the seller (typically a trustee, auctioneer, real estate agent, or trustee’s attorney) and other key facts like the address of the property, whether a stalking horse purchaser has been identified, bidding requirements like deadlines, bidding procedures such as date and location, and usually a purchase contract. NEXT STEPS After reading the sale motion and any other corresponding documents from the docket, you should contact the seller to ask any follow up questions and make a bid. Good luck bidding! |