All Forum Posts by: Matt W.

Hi Wayne, 

Yes it was Ch. 13, I've posted the link to the General Warranty deed that includes the bankruptcy order to allow the sale.  It's my understanding that a bankruptcy isn't required for a short sale, but once a bankruptcy is started a judge can approve or deny a short sale from taking place...is this accurate?

Lets see if this link works:

https://search.newhanoverdeeds...

If not, its a NC General Warranty deed and attached at the bottom is a file from US Bankruptcy court, Ch 13 with the file and titled "Order allowing application for Private sale of Real property and approving attorney fees"

@Minna Reid

Thanks,

I believe how the sale happened IS relevant to me because I would like to learn how to do it myself next time so I don’t miss the deal.

It's possible the ARV is off, but is says right in the deed that the amount owed is $280k and they are settling for $189k plus $2500 to the seller.

I’m going to contact a few bankruptcy attorneys and see if they could help me out should I find a similar deal in the future.

Some quick background: 

I contacted a man headed to foreclosure back in April 2020. It was a nice SFH, probably worth $300k. He met me and showed me the inside, nothing wrong with it. His wife passed away in the house so he had problems just being there, didn't want to bother listing it. We called the bank together and found out the total payoff with interest and fees was @$280K, so not enough meat on the bone for a good deal. I said sorry I can't help you, and we went our separate ways.

A month or so later, I see it scheduled for auction at the county courthouse for $282k, and again I think "Too expensive, but I'll keep an eye on it."  I think the owner ended up declaring bankruptcy around this time, because the auction listing was removed soon thereafter.  

So now it's May 2021, and I look up the house to see what ever happened to it. On the county register of deeds I see it sold two months ago for $189k?@?@!! What?? How??! Also it was spelled out that the seller walked away with $2500 after all fees. I do some digging and contact the owners of the LLC who purchased it. It's a husband and wife, while speaking with the wife I can hear the husband in the background shouting "Hang up the phone, don't tell him anything!!!" The lady was courteous but did not give me any info.

I just requested the public bankruptcy filing from the courts to see if I can get any more info.  Does anyone know how they pulled this off?  The bank took an almost $100k haircut on this deal!  My thinking is that the seller declared bankruptcy which bought him a few more years before the house was sold (although he didn't live there).  The bank thought it would be better to get some money now rather than delay for years. 

How did they investor buyers even propose and negotiate this deal to the bank?  I assume his bankruptcy attorney had something to do with it.   Thanks for any advice!

@Colin E O'Connell

Thanks! I should mention I’ll have an attorney do a title search before committing, but I don’t think that will tell me if all the appropriate parties have been properly notified about the sale.

I am researching a property that is scheduled for tax foreclosure sale in Wilmington, North Carolina, New Hanover county.

The law firm that handles the foreclosure for the county says that the property will come with a “non-warranty commissioners deed” but the paralegal could not really explain what that meant.

The law firm also says that they WILL sell me title insurance at the time of purchase. They would not give me the name of the title agency that they use, however, citing privacy. I have read that tax sale properties will have a clouded title and will require extra legal action to get the title cleared in order to get title insurance and thus financing, so this is confusing to me.

The plan with this property would be to BRRRR it, so eventually getting financing is required.

Has anyone in NC dealt with a situation like this?

Thanks!

@Joe Villeneuve

Maybe I should have said double your equity.

@Jeremy Torres

Purchase price would help determine if this was a good deal, meaning 20% down on an $80k house to make $247/month is not bad.

20% on a $300k house to make $247/month IS bad from a cash flow perspective.

If it’s appreciating like crazy that’s a bit different, might be worth it to suffer a few years to double your down payment.

@Nathan G.

I’ve made postings on Facebook that basically say “Everything is free, come take it!” And tons of current and future hoarders show up and take most of the trash.

I usually do this when I buy a house full of

junk, I guess this situation is a bit different. Very sad story.

As others have mentioned, I would get into a skilled trade that requires a license that cannot be offshored or done by a machine (plumber, electrician etc).

This would set you up for good W2 income, you won’t go into debt, it will expose you to renovations, and you can house hack while you’re young and single. Honestly if you could house hack into 5 duplexes from age 20-30, you would be so far ahead of the game you could almost retire. I know 30 probably sounds old but it comes up quick!

Whatever you do, DON’T go to an expensive private school and major in some liberal arts degree and take on lots of debt!! I majored in history at a public university and spent my 20s skiing out west. Thank goodness it was relatively cheap and I paid off my debt. I had to get an apprenticeship with GE as a nuclear reactor technician to ever make decent money.

Just my jaded 2 cents.