The meeting provided an in-depth walkthrough of identifying and acquiring bankruptcy properties in California, with a focus on Los Angeles County.
The presenter demonstrated practical use of RealtyTrac, LPSASAP.com, and PACER.gov to locate and analyze foreclosure and bankruptcy cases, and explained how to determine when properties become available for purchase.
Attendees asked questions on homeowner incentives, the sale process, and the impact of bankruptcy types on credit.
The group was informed about a follow-up session on Saturday focused on hidden market properties and writing offers/contracts.
Action Items
Tomorrow – Lisa: Forward the recording link of tonight’s webinar to the group once uploaded to YouTube.
Saturday – Tony: Prepare detailed contract-writing segment for the follow-up session, covering bankruptcy and probate property offers.
Ongoing – All attendees: Review RealtyTrac and LPSASAP.com for bankruptcy leads in their own ZIP code or area and prepare to discuss findings Saturday.
Ongoing – Lisa: Field additional questions from attendees and ensure they are addressed during Saturday’s training.
Bankruptcy Properties – Identification and Lead Generation
Hidden market properties with no for-sale signs or listings often overlap with bankruptcies and are highly promising for acquisition.
RealtyTrac and LPSASAP.com are key tools for finding pre-foreclosures, properties scheduled for auction, bank-owned properties, and bankruptcy cases filtered by geography.
Users are advised to focus on a 5-mile radius or targeted ZIP codes to build expertise and efficiency.
Foreclosure Auction Monitoring
LPSASAP.com provides free daily foreclosure auction results, showing whether properties were sold, cancelled, postponed, or affected by bankruptcy.
Cancelled auctions often signal last-minute bankruptcy filings or workout plans; these homeowners are prime candidates for outreach.
Observing auction sale prices helps estimate investor appetite and benchmark offer amounts for distressed properties.
Researching Bankruptcies & Property Status
PACER.gov is an essential tool for accessing detailed bankruptcy case records using owner names or case numbers, at minimal cost.
The key document: “Order Granting Motion for Relief from Stay.” When granted, this means the property is no longer shielded by bankruptcy and can be purchased from the homeowner before auction.
Sending letters to these homeowners is recommended, as many do not realize they can sell at this stage.
Offer Process and Homeowner Education
Homeowners often need to be educated about their right to sell after the stay is lifted; bankruptcy courts seldom advise them directly.
The main incentive for homeowners: selling avoids a foreclosure on their credit, improving future prospects vs. having both bankruptcy and foreclosure.
If the mortgage balance exceeds home value, a short sale is necessary, requiring bank approval.
PACER documents often provide essential details (loan balance, arrears, valuation) to inform offer strategy.
Offer contracts should be structured to protect the buyer and allow for property inspection and title verification.
Bankruptcy Types and Credit Impact
Chapter 13 involves a court-supervised 36-month repayment plan; Chapter 7 can discharge debts quickly (as fast as 3 months).
Rebuilding credit is generally easier after bankruptcy alone versus bankruptcy plus foreclosure.
Debtors can sometimes “reaffirm” their mortgage to keep their home if they can prove ability to pay, though this is rare.
Upcoming Training and Offer Writing
Saturday’s session will focus extensively on writing contracts for hidden market, probate, pre-foreclosure, and bankruptcy properties.
Required use of California Equity Purchase Agreements if the property is in default and has equity; standard agreements suffice otherwise.
Guidelines and templates for these contracts will be provided and explained.
Decisions
Saturday training to focus on contract writing for hidden market properties — To ensure attendees are fully prepared to make offers on bankruptcy and probate properties.
Open Questions / Follow-Ups
Will additional probate-specific contract-writing resources be available?
Is there a cost-effective way to access batch data on bankruptcies via PACER without incurring high fees?
Are there updates or changes in California law that could affect the use of standard vs. equity purchase agreements for these transactions?