Foreclosure home vs Bankruptcy home: Is there really a difference for a buyer?

**alandaj** · 08-24-2009, 04:55 PM

From things I have seen the two seem to be considered different. Other than the way the house entered into its listed situation, are there any different nuances between the two from a buyer's perspective? Any help is greatly appreciated, and if you need any more help understanding what I am asking I will do my best to make myself clearer.

**Greg** · 08-25-2009, 07:28 AM

With the rules of lending changing every day I think it is too soon to say.

Everybody quotes the old rules with a specific number of years for each scenario to be removed from your record but I would be surprised if those old rules will apply 3 years from now.

**kevin@BootStrapLearning** · 08-25-2009, 08:49 AM

Originally Posted by alandaj

From things I have seen the two seem to be considered different. Other than the way the house entered into its listed situation, are there any different nuances between the two from a buyer's perspective? Any help is greatly appreciated, and if you need any more help understanding what I am asking I will do my best to make myself clearer.

The end result is the same but the parties you are dealing with are different. In one case you are dealing with a lender and in one case a bankruptcy trustee. Given the current state of things, the bankruptcy trustee might be more amenable and less busy than the lender.

**tucsonhomes** · 08-25-2009, 04:00 PM

Originally Posted by alandaj

From things I have seen the two seem to be considered different. Other than the way the house entered into its listed situation, are there any different nuances between the two from a buyer's perspective? Any help is greatly appreciated, and if you need any more help understanding what I am asking I will do my best to make myself clearer.

Are you a buyer for a property that has been foreclosed or bancrupted, or are you an owner looking at the best of 2 bad alternatives?

**alandaj** · 08-25-2009, 05:16 PM

Thanks for the response Greg, but I hope to never experience that personally.

The former Tuscon. I'm mainly wondering is there any difference in the buying process between the two.

Originally Posted by kevin@BootStrapLearning

The end result is the same but the parties you are dealing with are different. In one case you are dealing with a lender and in one case a bankruptcy trustee. Given the current state of things, the bankruptcy trustee might be more amenable and less busy than the lender.

So there is nothing extra to deal with for a bankruptcy home? I wasn't too familiar with these types of properties, but have seen them available in my area. Seems like foreclosed homes get all the "hype".

**markbrian** · 08-26-2009, 08:45 AM

To the buyer the difference might be the speed of a reply to an offer, with the bank possibly being slower to respond.

**tucsonhomes** · 08-26-2009, 01:42 PM

It depends. (Nice answer - huh?) Some bancruptcy situations require court hearings and actual auctions in the courtroom before the court declares an offer accepted. Some REO deals can be nighmarishly comlicated to get all the ducks in a row before there is an agreement or before an agreement can close.

Each transaction is different and each requires its own experience and expertise.

**alandaj** · 08-28-2009, 01:54 PM

Ok. So even though both have their quirks, it sounds almost like the BHs tend to have a longer wait period compared to a FH. Do the previous owners of the BH still reside in the home extending the process or are they already out of the house.

I tell you, I'm more than ready to get out of this apartment with how things keep happening. My water heater committed seppuku and drenched my carpet and floor.