When to buy

[almost_homeless]

I got an email from a friend, who filed bk, but has not gotten her discharge papers yet. She said that the last day for dispute was Monday 10-03-05. She said she has been offered a great deal on a home and wanted to get it ASAP before the people sold it to someone else. She asked me if she could buy it. I told her i didn't think she could until she got her discharge papers. Am i correct on this, or can she go ahead. If she does do it, what will happen? She lives in Ohio too, but a different part of the State then me.

Ops..almost forgot. Her Atty is on vaction till next week, and the office girl told her she couldn't advise her.

[sunshine08]

I don't know why she can't.

[bezoar]

Why not tie it up with a contract & deposit - add the stipulation that the contract is contingent upon buyer's atty's approval.

[Minnymouth]

Can you buy a house while in bankruptcy? Your not supposed to buy or sell anything until your case is dismissed by the court without the Trustee's permission and permission of the court. Until she has those discharge papers in hand or noted on Pacer she is not dismissed.
Could she sign a contract and put up a deposit? I wouldn't unless I had the permission from the Trustee or I had my "dismissed" papers. She could if she really wanted too......as her case is probably dismissed already.
Lots of opinions about this.......trustee could hold her case open - wonder where she got her downpayment??, etc.
Besides, coming out of bankruptcy, its extremely hard to finance a home with a reasonable interest rate?

Lots of things to consider,

She really needs to consult her attorney on this matter, better safe than sorry...

Minny

PS Let us know what she does.......I'm curious now....

[HHM]

Does she even know if you will qualify for a loan for this house given that she is just out of bankruptcy...how would she pay for it.

Strictly speaking, she can't incur new debt while in bankruptcy (i.e. before discharge). However, she could make an offer and begin the purchase process. Most home sales take time to consumate...at the very least, if the offer is accepted, she could tie up the property for 10 days during the due dilligence period. However, she runs the risk of committing fraud against the sellers if she makes an offer but is not in a position to be "ready, willing, and able" to close the deal.

[almost_homeless]

I don't know where she is getting the DP...i am assuming from a friend. I emailed her back with some of the replies...and i told her just come to this site so she could answer all the questions...LOL. I am waiting on her reply.

[sunshine08]

Good answer, then she can put everything out on the table. It is almost impossible to buy a house overnight, she shouldn't do anything w/out her attorney's approval and hopefully she will get the discharge in the mail.

[almost_homeless]

Update. She didn't get the home. I got an email from her...she finally talked to her atty office yesterday. He said NOOOOOOOOO. She is not allowed to purchase anything until her BK is discharged. End of case. She was disappointed, but i explained to her it was for the best and to wait. I also gave her this link, but i haven't seen her yet.