Important terms to know:
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Bankruptcy trustee properties Assets owned by someone who files for bankruptcy. They are managed by a trustee appointed by the bankruptcy court. In some instances, trustees have the power to sell the property to obtain the equity for the benefit of the bankruptcy estate. These properties are usually sold free and clear of all liens pursuant to court order. |
How do bankruptcy trustee properties work?
Bankruptcy trustee properties are handled by court-appointed trustees who manage the assets and settle the liabilities of an individual or entity that files for bankruptcy. Under certain conditions, the trustee may decide to sell the property to obtain funds to distribute to the creditors in the bankruptcy case.
Bankruptcy trustees handle most aspects of the property sale, such as showings, photos, and evictions. Trustees are motivated to sell at auction, allowing buyers to secure a great deal more quickly and with less stress than traditional purchases.
One significant benefit is that bankruptcy trustee properties come with clear titles, free of liens or encumbrances, which provides extra peace of mind for buyers. Buyers may also access these properties for viewings or inspections, even if they are occupied, and there may be financing options available.
Quick info on bankruptcy trustee properties
| Financing or cash-only: | Typically both, depending on the sale circumstances |
| Inspection or sight unseen: | Inspection/open house can be allowed by trustees |
| Property types: | Residential (single family, multi-family, modular, mobile) |