In escrow, seller in bankruptcy, what should I look for?

[Dan N.]

Seller agent disclosed today that the seller is filing for bankruptcy.
I am already in escrow.
Besides the checks that the title company will do, is there any additional steps I should take to make sure that this house is not subject to repossession by any creditors?

[Chris Seveney]

@Dan N.

I would ask your agent to ask their agent is the home being included in the bankruptcy?

Why is the borrower filing for bankruptcy ? Usually it’s due to being behind on her home. If you have it pending I would think they would sell it first then file bk.

With the home in BK you would need to get the trustees approval (assuming ch 13) if it’s ch 7 then it should be faster but still take 3-6 months