How to Buy from Seller That will File Bankruptcy in 3 Months

3 Replies

I have a seller willing to sell her 2nd house with sub2, but she's filing bankcruptcy in December. Can I do sub2 with a land trust in this case? Would the bankcruptcy trustee reverse the deed to land trust? If not, what's my other possible strategies to purchase? 

Originally posted by @Andrew Y. :

I have a seller willing to sell her 2nd house with sub2, but she's filing bankcruptcy in December. Can I do sub2 with a land trust in this case? Would the bankcruptcy trustee reverse the deed to land trust? If not, what's my other possible strategies to purchase? 

 Don't do it. If she knows she is going to file bankruptcy it becomes a can of worms. All of her properties and possessions become part of the bankruptcy estate. Any major transaction just prior to a bankruptcy can and probably will be viewed as fraud on the bankruptcy court. Yeah, some pretty serious stuff.