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socrateaser, Attorney
Category: Bankruptcy Law
Satisfied Customers: 37868
Experience:  Attorney and Real Estate Broker -- Retired (mostly)
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to Socrateaser....f

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to Socrateaser.....I realize that all of this is what if's......if the house is in foreclosure after we filed bankruptcy I undertand the bank with the loan trys to sell it and the bank with the judgment goes for any monies paid over the amount owed and of this money I am intitled to 10k. However, if the home takes forever to sell and an offer is made and accepted for a lower amount than is owed on the house, I am okay because of the bankruptcy and they can not come after me for any difference. The senerio is it sells for a lot less than owed. The new owner leases it back to me. At some point and time I can get a refinance and buy. from the new owner or do a lease purchase deal, if I win the lottery. Okay should the bank sell it for more than we owe (doubful) then we would get 10k if there is that amount to get. If we were to lease purchase it back and then decide to sell (I guess we would have to own at this point) and we decided to sell then we would get what ever equity is there if any. So this way we could possibly have enough to buy another house and not live in gov subsidised housing. I know I am not looking forward but at what I could gain and which is the best way. Is this I breaking the law if the new purchaser just decides they don't want it and give me the opportunity to buy it. I think I have a job but it is straight commission and I really like the product and it helps others but will take a while to get off the ground but does pay residual income. I am only talking what if's...have lived here 30 years.....could win the lottery....but need to know if it is legal.....thanks millions
If the purchaser from the foreclosure or bank sale has no relationship to you, and you enter into an "arm's length" negotiation to purchase from that person, then you have not violated any law.

If you have a preexisting relationship, and the transaction is not "arm's length," and especially if you worked out this chain of events in advance, and did not disclose your plan to the bank, then by your inducing the bank to sell to a third party for the purposes of reducing your loan obligation, so that you could repurchase the property at a lower cost, you and the previous purchaser may have committed federal bank fraud (18 U.S.C. 1344). This is a big-time white-collar felony/crime (up to 30 years imprisonment and a $1,000,000 fine).

So, the answer here is that if all this just happens by chance, then you have no liability -- but if it's contrived in advance, then don't even think about it.

Hope this helps.

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Customer: replied 5 years ago.
To Socrateaser,

Is it possible that after I file bankrupcy and the judgment against me or my property is gone that the bank would work with me on a modification if I can show income to make payments and not send to foreclosure or is bankrupcy a done deal for that.....
I know I ask a lot of questions...sorry...
Anything is possible. However, the bank has a fiduciary duty to its shareholders to liquidate assets in the most cost-effective means possible. Generally, this means an open market transaction that permits the property to go to the highest qualified offeror, such that no one (at the FDIC or SEC) can later claim that the bank was playing games and underpricing the property to an insider.

So, while I understand you're goal, I think you're probably whistling in the dark, here.

Hope this helps.
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