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What's Your Home Worth?
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Your best source for Real Estate in Wichita
Kansas
No one knows Wichita homes and Wichita neighborhoods better
than Larry Underhill. He has been the number one Realtor in the Wichita real
estate market for the past six years and has been one of the top three Realtors
in the United States for the past five years.
Wichita Real Estate
You will
find listed here some of the more progressive Wichita real estate agents who
have turned to the Internet as a means of putting local residential properties
before a national home buying audience.
Forclosure And The Durrett Rule
by Mark Walters
It's probably
happened to you...
Folks learn that you know something about real
estate investing and they eagerly ask you about buying foreclosure
property.
The general assumption is that they can buy a beautiful home
at a deep discount at a foreclosure auction.
Their smiles fade when
you explain that they will have to pay cash on the spot and they must be able
to research title to be sure they aren't buying trouble.
But wait...
there's more... There is also a little something called the "Durrett Rule".
Oh boy... can that be a like a knife in the back. For example: You spend
the time and effort scouting out a nice home scheduled for foreclosure auction.
You search title and scare up the cash to have in your pocket when you go to
the sale.
Hurray... You have the winning bid at the foreclosure sale
and buy the home at about a 40% discount to market value. After doing your
happy dance you spend the next few weeks doing needed fix up. Then you find a
renter and settle back to collect rents for the next few years.
But
wait! Who's that knocking on the door.
Why it's a nice man who says he
is taking the home away from you. Who is this pretentious devil? He is the
dreaded... BANKRUPTCY TRUSTEE!
Shortly after the original homeowner
lost his house he filed for bankruptcy. The wheels of the bankruptcy court
grind slowly and the trustee just recently learned that the house had been sold
at the auction.
And... The foreclosed upon owner had a nice hunk of
equity in the home when he lost it. Uh oh.. get ready for this. It is trustee's
job to capture that equity so it can be distributed among the bankrupt home
owner's creditors.
Can he do that?
Yes! Under the power
granted by The Durrett Rule the trustee can show you the door and claim the
home in the name of the bankruptcy court.
You, see the bankruptcy
court has more power than Edison Electric. It can do about anything it wants
when it comes to assets and creditors.
Oh sure, months later, after a
battle in the bankruptcy court, you should be able to recover the money you
paid for the home. Of course... no interest is paid on the money for the time
it is tied up in court and you will not be able to recover the attorney fees
needed to get your money back.
Buying at foreclosure sales is not for
sissies! Stick to an easy money tactic... buy in the preforeclosure period with
this system.
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