to do is uh talk about well I'm just before I show you how to find all the bankruptcies in California I just want to mention that it's a it can be very lucrative uh when I find hidden Market properties uh just homes with no for sale signs no ads in the paper nobody even knows that these homes could be bought it's because we see them in neighborhoods you know when you're riding through a neighborhood uh you'll see houses that look distressed or they may even appear to be vacant or they may have high grass or they may have overgrown bushes but sometimes they're they're tied up in bankruptcy and from working the Foreclosure business for all these years I know for a fact bankruptcy is a very popular uh topic with a person in foreclosure not only are we sending letters to people in foreclosure asking if they would like to sell their homes but also bankruptcy attorneys are sending letters to people in foreclosure and they're like competing against us because they're telling these homeowners that if you file bankruptcy it will stop your house from going up for a foreclosure option in other words they're saying hey hire me to file bankruptcy and it will stop the foreclosure process so foreclosure and bankruptcy work hand inand and so a lot of people file bankruptcy because they're about to go into foreclosure or they're already in foreclosure and their home has been set for auction so I wanted to show you uh I happen to use realy track uh and I'm going to be showing you several other ways to find bankruptcies in the California area but I just want to show you on realy track because that's what I use and uh so what I can do is I've I've typed in right here Los Angeles County and it brings up all the preforeclosures it brings up all the homes that are scheduled to go to auction and it also gives you a list of all the bank owned properties in Los Angeles County now if I wanted to I could put in a city or a zip code and narrow it down but I like to start out with you know the entire County and so if I was to click on this little thing well first of all I want to show you a map I just want to show you what what it looks like from an aerial view with all the foreclosures now the the Red Balloons are home scheduled for auction and the the blue balloons are pre you know people that have a notice of default filed against them and the orange balloons are the bank owned properties so if you look at this area here's Long Beach over here uh this particular area the green balloons are homes that are listed on the MLS or have been and you can actually zoom out a little bit and get a bigger view of the area now it looks like there's a lot of homes for sale over in the Long Beach area they're sort of spread out over in this area and then I can sort of go up a little bit here but I just want to get an aerial view of what it looks like and now what I'm going to do is go back to the list and then there's a filters button and if you click on filters you can go over here where it says bankruptcies and you can put only show and I like to exclude any listed properties that are in bankruptcy but once I click only show bankruptcies I can hit submit search and here is a list of all the people that are currently in or under bankruptcy let me go up here to 50 per page I want to show 50 addresses per page and look that's how many people have filed bankruptcy in the LA County area okay and uh so if I wanted to you know the next website I'm going to show you is how to look at their bankruptcy cases to see if their homes can be bought because remember when a home is in bankruptcy it cannot be purchased it can't be auctioned off a creditor can't even try to collect from that homeowner they can't you know they can't repossess their home they can't repossess their car they can't call them and threaten them while they're under bankruptcy but they're there is a document that is going to be filed eventually that will allow them to sell and allow you and me to buy now something went wrong here it somehow changed to Carson California so let me go back and put in Los Angeles County because I know there's got to be a a lot more bankruptcies than what we're seeing and you see look that every one of these see this little button right here says bankruptcy and just look at that folks there's 50 addresses per [Music] page and we're going to go down to the bottom and there's at least seven pages you see they can only put 50 addresses per page but there's seven pages so there is plenty of bankruptcy leads in Los Angeles County now of course what I would do is if I lived in say Gardina California I would I would uh just punch in Gardina California and I would only work those leads because remember if you were in my Monday night class at Lisa's uh investors Association group meeting I said you should work a fivemile radius and try to just become the master of a f mile radius from your home or uh the guy that gave me a ride to the airport last night which thank you again for doing that U but uh when he gave me a ride to the airport he says he lives in a really expensive area and uh and he doesn't doesn't know whether he should work that area and I said well you should work that area because PE those homes sell good too if there's anything distressed you should work it but you should pick out another zip code and make that your fem radius some that you can just work in one specific area but anyway I just wanted to show you a countywide uh to show you how many bankruptcies there were now there's another website that is free and it's strictly for Cal I mean well I I say it's strictly for California it's a really good website for California and uh but it does cover a lot of Western States and that is called www. LPS asap.com and let me pull that up now what this is is this is a fantastic website to find out what happened at the auction and in California in Los Angeles County they have an have the foreclosure auctions every day of the week Monday through Friday so I always encourage my my uh Associates to go to the auction to meet cash buyers and to see what they're buying where they're buying them and how much are they paying because that'll help make you an expert is if you know what is going on in your area it's a good way to know what's really happening in your your county or your area now this website here's how you use it you you've got to sign up but I've already signed up but it's free but you've just got to have an access login you know password so I'm going to go ahead and click on mine and I click on this and then just to make sure that you're not giving other people your password you have to enter in one of these funny numbers so I'm going to put in x [Music] e 7 N D I don't know if that's a d or P I don't know we'll find out won't we that worked okay so my next thing is I want to go over here and choose a state and it says Cali California okay and then I want to choose Los Angeles County and then down here I can choose a date so what I can use this date for I can see what was the results of yesterday's auction so I'm going to click on the 15th and I'm going to hit search now I just want to make sure that I'm being heard uh uh can someone type a message to Lisa to find out if we're if if if if everything's working correctly I mean before I go into this Tony I know I can hear you um and Alice can as well and how about the uh the can you see the screen good yes I can see the screen very well all right okay so we're GNA move on so what I've done is I've gone to LP s asap.com and I put in the state of California and I put in the County of Los Angeles I put in yesterday's auction date and I'm hit I hit search okay so all right so I'm going to scroll down now what this tells me is that yesterday at 11:00 243 West 118th Place went up for auction and it was cancelled and this next one is cancelled the next one is cancell the next one is cancelled now what I usually would do with those the cancelled ones is I would send a letter to those addresses saying hey would you like to sell your house because if you think about it they came within inches of losing their home okay so they may say wow if we ever get a chance to sell we better sell you never know but that's just another thing but we're here to talk about bankruptcies but I do want to show you all the benefits of this free website and Tony Tony first five or six properties were yeah uh why would a a foreclosure be cancelled what are the main reasons for that well they could be cancelled because of bankruptcy or because of a workout plan or a loan modification or they made up their back payments or they sold their house there's all kinds of reasons but I'm sure the majority of them is the bank is the homeowners in the bank have some sort of mutual agreement they're trying to work it out and so let me uh let me show you some further down the list where it actually says it was postponed because of mutual agreement between the owner and the bank uh now look now down here this one on 14536 wallbrook drive it actually sold you see right here the word sold okay well it tells you the opening bid was 260 no it says the loan balance was 265 the opening bid was 283 331 and it sold for 317 now that tells me that a bunch of people were bidding because in in Los Angeles County if there's only one bidder it sells for one penny over the opening bid one penny over because that's always the first bid is one penny over the opening bid so then the bidding starts so what this means folks is that some investor bought it for 317,000 and he out bid everybody now what I would encourage people to do is do the comps on that and that'll tell you whether that guy paid 80 cents on the dollar or 90 cents on the dollar or even full price of you know 100 cents on the dollar and it gives me an idea of how how homes are selling to investors you know what are investors doing at the auctions are they paying top dollar because if we're going to go out and find hidden Market properties and we're going to offer to buy bankruptcy homes if we get them under contract we may want to wholesale them to these very investors that buy at the auction so it's a good idea to keep up with how much they're paying and what they're willing to pay for properties okay now we're talking about bankruptcies so this list will show us how many people filed bankruptcy yesterday but it I just wanted to show you how the site works it shows the ones that were cancelled it shows the ones that were sold yesterday to investors and you can see a lot of these if you're looking well what we're looking at is every house we're looking at the sales status and it says cancelled sales status cancelled and we're going to scroll down because then we're going to start seeing some bankruptcies canell cancelled canell sold here's one where the opening bid was 360 it sold for 384 by the way this site is really cool because if you click on the address it usually shows you a picture of the house and where it's at you see so this is where it's at and then there's the picture of the house and uh of course now that may not be what it really looked like that day because the picture was taken probably two years ago and also you know you can use this to to look around the neighborhood too and there's cross the street look at them bushes over there all right so we're going to go back because I want to show you all the people that filed bankruptcy just yesterday at the four close closure auction okay so that was sold oh here I mean that was this one we were looking at but look below it here's another one that sold the opening biid was 385 it sold for 4015 so that's the kind of investors you're going to meet if you go to the auction people that have that kind of money okay now here's one that went back to the bank that's whenever you see the words back to Benny you see it here you see it on this one uh right here that went back to the bank these two properties did in hawor which is where we were okay now we're going to scroll on down because they usually have all the bankruptcies down at the bottom here's another one that went back to the bag here's another one look when you ask me why would they be cancelled look right here it says canell and it has no reason here's another one that was sold uh the opening bid for 525 sold for 669 it's just really an awesome site and I'm sure some of you knew about it but some didn't all right now we're getting into the bankruptcies you see right there it says the word bankruptcy as a matter of fact I've got a little highlighter so I'm showing you what to look for so it was postponed because of bankruptcy and let me get rid of this so I can scroll down some more Oh no I got to get rid of those highlights now okay there's another bankruptcy and you know there's a little trick to doing this if you if you're have if you really want to find the bankruptcies there's another one and if you keep scrolling down you should see a lot of them but you know there's a trick someone taught me that says if you hit contrl F and type in the word bankruptcy I don't know if you guys can see this but on my screen the bottom leftand corner I'm hitting control F and it opens up this little window down there Lisa can you see that window where my mouse is I can see that yes okay if I put in the word bankruptcy then I could just click this down button and see how it highlights it in green up here it on my screen it's green and then if I click the button it takes me to the next bankruptcy and then there's one below it so if I click this button it'll take me to that one and then I click next again and it takes me to the next one so so far we've seen about what 10 of them there's 11 12 13 14 15 16 17 18 19 20 21 I mean man that is a lot of people that file bankruptcy and if you keep seeing down the list of course this is countywide but uh that's a lot of bankruptcies in one day that's how many homes were postponed just because the owner filed bankruptcy so the point I'm making here is there is no shortage of bankruptcy properties now I've got to teach you how to buy them so I'm GNA open up another website www. pacer.gov w www.pacer.gov and this is it stands for public access to court electronic records and it's an electronic Public Access service that allows users to obtain case and docket information from federal appellant district and bankruptcy courts and the Pacer case locator by the internet is provided by the federal Judiciary in keep in with its commitment to providing public access to court information by a centralized service I think this website was really at first created so attorneys could access this information but uh now you know it's just public and I know I've been telling people about it for years I've been using it myself but I'm telling you I think it should be illegal the information you can get about people's bankruptcy cases it should not be public believe me because this website it allows you to obtain if someone files bankruptcy you can see everybody they owe money to you can see and you get their names and addresses and it shows you every every penny they make every source of income so let me show you how it works now it it doesn't cost anything to be a member but you do have to register by clicking this button and going through it it does not cost cost money to become a member but it does cost 10 cents per page to view a document but I'm gonna teach you tonight how to use it but not I'm going to show you how it won't hardly cost you a lot of money it's only like they only Bill you by the quarter and unless you use $15 worth5 $15 then they don't even send you a bill so I very seldom and I work bankruptcies a lot I very seldom use it because I know how to use this site with the minimal cost so it it cost me 40 or 50 cents when I'm doing research on a house okay so it's worth the money now let me show you how to use it since I've already got a password the first thing you want to do is go to court links and then here's all the bankruptcy courts in the United States and if you knew someone in snake Naval Wyoming that file bankruptcy you can access their file right from this website okay now it says California central eastern northern southern I used to think California Central was LA Los Angeles but that may be for downtown in the city I found that most of the cases I work in Los Angeles County are found under California Central so if I click on that the next step is to click document filing system and the next step is to register I mean you know type in my username and password and then hit log in and then my next step is to hit query I'm you know I'm gonna and then all I have to do is put in the owner's name you don't have to fill out all this stuff all you need is a case number or all you need is a name okay now let me go back before we actually do the research we've got to get a name of someone in bankruptcy so I'm going back to realy track now one thing I want to show you is if you click on the address let's say if you're using realy track and then if you're not using use a real through track I'll show you what to do too but if you if you click on the address you scroll down and look at all the information we have access to it tells us what foreclosure status is in is it in the pre-foreclosure stage the auction stage it also gives us the uh the dates the not of default or notice of Trustees sale was recorded it gives us the homeowners names you see right here and it tells when the auction date is supposed to be and this one was uh 417 so that was today and they filed bankruptcy so that postponed the auction and here's the the auctioner company this is the trustee that was going to Au it off and the bank was US Bank but let's scroll down or something else that it shows you that would come in handy for pacer right down here it says bankruptcy status and once that loads it says this property owner has filed for bankruptcy and it gives the debtor's name that filed this is the person that filed and it also gives you the case number down here now we don't need that all we need is the owner's name so real quick we will go over to Pacer and we'll put in that name so they want the last name here so then here they want the first name and then we hit run query oops did I do something wrong I tried the old copy and paste okay now because I didn't put the first name it's bringing them all up so let me go back and put in the first initial let's see if that narrows it down no doesn't even have an in oh sometimes if you're not all the way to the left it doesn't work correctly so here it is that's the Lady Mary a zachar okay so it says that she filed on in 2010 okay so let's look at the history of documents and then we want oldest date first so we run query this is her entire bankruptcy case okay now we don't care about any of those things except this document right here let me get my highlighter the only thing that the reason the way we save money we don't care about all these other documents all we care about is this one right here motion for relief from stay okay now let me explain what that means if I owe everybody money everybody on this call if I owed you money and you're hassling me you're calling me you're threatening me you're sending me letters saying we're going to repossess your house we're going to repos possess your car well if I file bankruptcy all of a sudden I'm protected by an invisible shield you cannot get to me because you cannot penetrate that Shield I'm standing behind a thick shield and I'm just sticking my tongue out going you can't touch me now that Shield is called automatic stay stay that's what it's called St y it's called automatic stay and that means that I'm protected under automatic stay so therefore if I if I um if if I file bankruptcy the bank is actually going to file a motion for relief from stay now what does that mean that means the bank is saying hey that house is my collateral so I'm filing a motion to get you to lift The Shield or the automatic stay off of the house so we can go through with the auction does everybody get that the bank is filing this motion to get the house released out of the bankruptcy so they can auction it off so the way we buy these properties is when the bank files this motion what we need to do is look for the answer it's usually called the the the uh the order on motion for relief from stay you see where it says motion for relief of the automatic stay so up here on 1219 they filed a motion for Relief and on 118 which is a month later that's usually how long it takes this would be the answer so we're going to read those two documents if they're not you know 100 pages long so let me get rid of my highlighter and I'm going to open one okay well let's see the main document is 13 pages and I did some other bankruptcy cases earlier so I'm going to get one where there's not as many pages because it would bore you to death if I went through all them pages but so here's what you're going to do see if the bank files a motion to get the house released and this document answers the question saying and this one's only five pages so we're going to see if it's been released because really that's how you save money using this site I was going to open the motion the 133-page document to show you what the bank is asking and how they ask to get the house back but the real important thing the only thing that matters to you and me is the answer of the motion and I can look at this right here and it says order granting motion for Relief under the automatic stay so right there I already know that this house has been released now folks write this down when you're doing a bankruptcy case you're looking for the order and if it says it's granted that house is released from the bankruptcy but it hasn't been set for auction yet I mean you know so what I'm trying to say is there's once this document is released it it may take two weeks two months or two years before the bank actually auctions the house off but this house because of this document is no longer under bankruptcy protection and you can buy it directly from the homeowner does everybody get the picture you're gonna buy the home from the homeowner so let's say that you have 10 or 12 bankruptcies in your ZIP code you would want to send letters to them saying hey would you like to sell your house or you know I can show you the type of letter I would use now the reason you're going to do that is because the reason they filed bankruptcy in the first place is to stop the Foreclosure now why did they have to file a bankruptcy it's because their bank would not give them a loan modification their bank would not do a workout plan with them they didn't qualify for any of the Obama uh foreclosure programs like harp Hamp uh all of those programs and that's why the homeowner filed bankruptcy so once this order granting a motion for Relief happens now the house is under the ownership of the homeowner himself until the bank auctions it off and that owner has the right to sell the house and they have no other options is everybody hearing that the bank that that means that the homeowner should be motivated to sell your houseon because they yeah go ahead in your experience do you do the homeowners generally realize they have that uh option at this point or is that something you educate them on you basically have to educate them because see the bankruptcy court does not tell them in a minute we're G to read this document okay and uh so when we read this document it doesn't say anything about the homeowner has the right to the bankruptcy court doesn't tell them they have the right to sell so what we do is sometimes the homeowner will say yes I would love to sell it if I'm allowed and there's been times where I've told them if if you feel uncomfortable call the bankruptcy trustee and ask them if you're allowed to sell the house because the we've had homeowners do that and every single time the bankruptcy trustee says yes you can sell it it's out of our hands and until the bank auctions your house off they cannot stop you from selling your home okay Tony we have another question um okay does the homeowner have to sell at the price at which they owe the bank yes uh I mean they don't have I mean let's say there's equity in the home okay okay they they don't have to sell I mean they do have to sell it for a price to pay off the loan unless you and I make a short sale offer and the first bankruptcy case that house that I bought in this process that you're learning tonight it was a short sale situation we had to short sale the audio Tony we still have lost your audio you sure you're not muted let me check check you out there nope not muted is called the deor the movant is called the bank Okay so movant you movant US US Bank as trustee in interest for Bank of America as trustee and successor by merger to Lal Bank as trustee for the certificate holders of bear Stern's asset back Securities you see how many trustees they have on this and then here's the trust series The Back series it is just amazing Tony anyway yes we lost your audio for just a moment um when you scroll down can you repeat what you were just saying there and then we ALS we also have another question that was asking would the proceeds of the sale I'm assuming this means e if they had Equity um affect their bankruptcy um okay what these documents we're about to read usually say is they say okay we're going to give you the house we're going to I mean we're going to get let the bank auction the house off but it states in there that if the house sells for more than what the opening bid I mean more than what's owed to Bank of America the excess funds have to be turned over to the bankruptcy court to be distributed amongst other creditors so let's read one and see if we can see where it says that okay so as to move hand its successors transferees and assigns the stay which is called 362 bankruptcy code is terminated as to the debtor and the dtor bankruptcy estate so that means the automatic State at Invisible Shield is gone okay so it says the motion is granted okay and it says let's go down here it says ment now who's the ment that's US Bank as trustee for Bank of America it says they may enforce its remedies to foreclose upon and obtain possession of the property in accordance with applicable non-bankruptcy law meaning you see they were foreclosing in non-bankruptcy law until those people filed bankruptcy so this document is saying now that that they can go back to doing what they were doing before the bankruptcy was filed but watch this look what it says it says but it says they can they can go ahead and obtain foreclose and obtain possession but may not pursue any deficiency claim against the debtor or property of the estate except by filing a proof of claim okay meaning they probably have to if they want to file a deficiency judgment which actually do you know California law does not allow deficiency judgments on people in foreclosure if you were to read the the foreclosure laws for California it's one of the few states that does not allow deficiency judgments but I'm sure they file them anyway they find some other way to do it okay and look it says the bank move an must not conduct a foreclosure sale before the following dates and it doesn't have any dates so they can go ahead with this document being filed they can go ahead and set an auction date but the home see until that auction happens if nobody bids the bank gets title to the house if someone does bid they get title to the house but the title is in the homeowner's name until the auction date and that is your and my window to contact these owners and buy the houses all right now let's see what it says here it says in Chapter 13 cases the trustee must not make any further payments on the account of the moan secured claim after entry of this order the secured portion of the M Van's claim is deemed withdrawn upon entry of this order without prejudice to ment right to file an amended unsecured claim for any deficiency absent a stipulation or order to the contrary movant must return to the truste any payments received from the trustee on account of move Advance secured claim what that's saying is that if uh you see when people file chapter 13 they have to pay their money to the bankruptcy court you know if you get a paycheck you give it to the court and the court makes your payments for you so this is just saying that now that this document is filed then the house is no longer under bankruptcy law so therefore no more pay ments should be made by the bankruptcy trustee okay so not unless these things are checked we don't have to you know deal with it okay and there's the document now I do want to and this is proof that it was served to all the Predators all the um uh you know everybody involved gets a copy of this but it says order granting motion from belief and see that's what we're looking for because you and I I showed you the list of all the bankruptcies on realy track I showed you all the bankruptcies on LPS but these don't mean a hill of beans if that makes sense here's all the bankruptcies here but until this order granting relief from automatic stay so you and I know the secret you know do you know that most people most investors uh when someone files bankruptcy they walk away because they don't pursue the house anymore because they don't think they can buy it but now because a bankruptcy law once this thing is filed then the homeowner does have the right to sell the house so why not send them a letter okay uh now I do want to show you the motion that the bank files because they do all of our homework for us they tell us how much the balance of the loan is they tell us how much the back payments are they tell us uh how much the Val value of the property is so they've done all your work for them that's why I want to show you one of those documents now the way I'm going to do that is I'm going to go over here I was actually uh doing some property uh I was looking for hidden markets in Gardina yesterday and so I'm going to put in Gardina and see if there's any bankruptcies there now this shows one in Gardina because I'm on the auctions tab now watch what happens if I go to the notice of default tab there's more people in bankruptcy under the notice of default so let's uh find an owner's name and let's do the research okay and this homeowner is named David Caldwell okay so now we go back to to where we can enter in his name is my audio working good Lisa still sounds good all right feel free feel free to use the bar on the side if anybody has any questions too yes okay okay let's see um I'm looking for aha David Theodore Caldwell is the guy that there it is and look he just filed March 12th so looking at his case there's a chance the motion for relief hasn't been filed see remember that other case we looked at it's been going on since 2012 and it had lots of documents because this case was just filed a month ago there're still you know they haven't got around to the bank hasn't filed the motion for relief of stay yet so here's here's how the process works and we don't need to open any of these documents because they don't really mean a lot to us but what it is he filed on March 12th and he here's a declaration where he filed electronically you can't file bankruptcy unless you get a certificate of credit counseling you actually have to go to a credit counseling agency and say hey do I qualify for bankruptcy because if they can't work your your deal out then they give you a diploma that says hey you get to file bankruptcy you're so messed up all right so here's a the debtor has to fill out a a certificate of employment income has to give his social security number has to and see they shouldn't show all this on on these sites but uh and there's a certificate of notice they're going to have a meeting of the creditors but anyway let's move on to another one where the because this one's too too new and but if you if you were to pursue knowing I mean you could actually keep David's house and name and address on file and P and check this website periodically looking for that automatic stay to be lifted so therefore you can predetermine those okay so what we're going to do is we're going to go back to Gardina and we're going to check the next one and we're going to process it Tony question for you when uh when you're negotiating with the homeowners that are in for excuse me in bankruptcy um what what's in it for them I guess to sell you the property obviously the um you know if they're not going to see any upside on the equity then then how are you convincing them to sell to you okay that's a very good question I'm glad you asked well you think about it if the homeowner asked me that question what's in it for me here's what I would tell him I'd say now listen you've already got a bankruptcy if you let the bank auction your house off you're going to have a foreclosure and a bankruptcy on your credit and a lot of times they'll say my credit is shot I don't care about my credit but I say listen you should care because if you can avoid getting a foreclosure right now all you have is a bankruptcy and you're going to get the opportunity to establish credit within two years you're going to have car dealerships wanting to sell you cars you're going to have credit card companies offering you credit cards within two years but if you have a foreclosure and a bankruptcy you're you're really messed up for the next 10 years and I try to pump them up I say listen this too shall pass within you know you never know what's your life is going to be like in two years you may meet the woman or the man of your dreams you may want to get married uh to someone else and uh and especially in California I'm just but uh you might want to get married and you're gonna hinder your new spouse from being able to get a home together I've seen that happen Lisa where uh people's lives got better and they get married and then their their spouse finds out I should have checked her credit before this because we can't get a home because you have a foreclosure you see it's easy if you just have a bankruptcy to rebuild your credit and still get loans and houses and cars but when you have a foreclosure that is the worst because in my opinion that if you walk away from the roof over your head you do not look good in a creditor's eyes and nobody wants to loan you money especially to buy a home if they know that if times get tough you're just going to walk away always so that's what I tell the homeowners do you know if there's a difference uh or have you had the question between a Chapter 13 vers of 7 with respect to their credit and rebuilding their credit okay testing I know mine is still working according to the V meter but I lost you right in the middle of that question uh we're all back now I think um okay yeah yes um my question was whether there's a difference in re the time it takes to rebuild their credit if they file a Chapter 13 versus a seven well a chapter 13 usually goes on for three years uh you're just it's like a reestablishment you actually pay your paychecks to the bankruptcy court for a threeyear period and that they set up a plan to try to get your debtors paid off in three years now if you were one of the debtors and I owed you 500 a month the court the bankruptcy court would say now Lisa where only going to pay you $100 a month for the next three years so a bankrupt a Chapter 13 is usually a 36 Monon plan a chapter seven can be very quick like you know three as little as three months because chapter 7 is just saying hey take all my assets uh sell them do whatever you want wipe out all my debt and let me start clean now I will tell you that if you own a home you are allowed in a bankruptcy to wipe out all your debts but you're allowed to do what's called reaffirm your mortgage so if you can prove that you can make the payments then you might get to reaffirm and you can wipe out all your other debts but you get to keep your home if you can prove you can make the payments now that only happens one out of every 10 people that file and uh so it's very rare that it happens but uh but just remember if anybody on this call ever gets in a situation where they have to file bankruptcy just remember to to find out about what's called reaffirmation okay so I want to go to I want to do that one there's at least one where I can show you the actual what the bank side of it says so I don't remember which one that was this is Otis Robinson it I was just sort of playing around with these I think it was this one L Avenue in Gardina and the guy's name is Nicholas balbus actually you know what that's not it either it's the one that was over in the auction category uh over here I think the guy's name was George Williams so I'm going to click on auction and it's thinking there we go George Williams okay so I'm going back to Pacer let me put in Williams George runquery whoa George R Williams is what we're looking for pass tell you what I'm g go back here and put in his initial oh no match fou do you have to put the r in the middle name there oh I didn't even see a space for the middle name oh it's way over here that's why I didn't see it all right here we are it must be this one because it was filed here now remember folks I did tell you this this site is very valuable but remember the only time you want to open a document is if you see the order or on motion for relief from stay you see I don't see one here so therefore it's not going to cost me a dime to to look at this case you see so be very careful about opening documents because uh you know some sometimes documents can be you know a 100 pages and uh you don't want to get a bill a Big Bill for nothing you know so and sometimes it'll give you a warning you know this you see all these buttons up here this thing called reports I know that there is a way to find out all the chapter sevs that were filed all the chapter 13s and you can actually get a list but it's better to use something like realy track or that site that LPS site because it you never know how many if you click on chapter 7 it may bring up 10,000 of them and you got to pay for all of those leads and it's very expensive so don't be playing around with this site it's just a warning and they give you warnings too I don't know if we've seen one tonight that they say hey you're gonna be built now like I say my bill runs probably four or five dollar per quarter and they don't even Bill me I don't even have to pay it because unless it reaches $15 they don't even want you to pay it yet because they they don't want to have to you know just take away the credit card fees or something you know it's just not worth it to okay I'm gonna have to do something here I gotta go back I actually do have to get rid of the r because now I remember how I found a certain document that I have to repeat that process I am actually looking for the words Eddie Tad uh if I see somewhere in here I saw something that said Eddie Tad and I opened it and it had the documents I wanted to show you guys there it is right here a chapter 7 and it has the motion for relief from the bank and we're going to read one you see this motion for relief from stay and that's not the right one there's another one down here I think okay now I could show you what they look like oh that's the order granting motion that was the answer you see in California I guess all the um all the Motions for Relief contain like 22 or 23 Pages you see well I'll show you one I'll go ahead and show you what it looks like but the this motion for Relief it's actually 22 Pages I'm going to go ahead and pay just to teach for teaching purposes and it says notice of motion and motion for relief from the automatic stay for for order confirming that the automatic stay does not apply huh so it says this motion is being heard on a regular note notice to a local rule that does have anything for us I want to get down to the parts where it shows you the the balance of the loan and uh look it says the bankruptcy case was filed in bad faith to delay hinder or defraud the bank the moovant which is the bank so that's what they're doing is you see when a bank files a motion to get a house released out of the bank ruptcy there's really only two reasons they can get the house released number one is lack of equity they claim there's not enough equity to benefit the other creditors or the other one is lack of adequate protection meaning the house is declining in value let us go ahead and Alternate while it still has value which that was working good from 2007 through through 2010 or lack of adequate protection also means that um that no the bank is not collecting any money whatsoever and they say you know we need to auction off our collateral right now because it's just deteriorating in value the house could be getting vandalized or whatever but anyway so they're using this this as a uh as a reason to get the house released uh that it was filed in bad faith to hinder or defraud the move in which I'm sure 90% of the bankruptcies are really to delay the Foreclosure Tony we have a question um can you share how we know how much to offer the homeowner uh um once they know they're in bankruptcy and they a motion for relief for stay okay well what you got to do is you got to know what the balance of the loan is and that's what I was looking for on this page because they usually do a lot of work for you they tell you the balance of the loan they tell you everything but but you see you have to basically offer at least the balance of the loan unless the balance of the loan is high higher than the value of the property then we have to do a short sale offer and that means we have to get it approved by their Bank okay and uh hey I just noticed something too it's this is actually an investor who filed bankruptcy see wood property Investments LLC No actually that's the bank I see you see that's the an okay so actually somebody must have done some owner financing and the had sold the house to a home buyer and they quit making payments and filed bankruptcy so this investor is trying to claim that they filed in bad faith but anyway all right uh so let's talk more about the offers we have we have another quick question uh would it would it make sense in this case to try to buy the note from the bank and proceed with the sale as the beneficiary to try to buy the note yes that's you could try that yes you could uh just try to buy the note directly from the bank instead of dealing with the homeowner but then you're GNA you know have to just you know you got you've got to evict the homeowner or give cash for keys or something but you could try that especially if if it's a short sale situation but I I can tell you from experience that a lot of them that I've dealt with had to be submitted to the bank for a short sale and the bank was so much easier to work with in a bankruptcy situation than they are in a non-bankruptcy situation I don't know why but uh I guess they're just scared that they may break some kind of rules or something so it seems like they they cooperate better because you know it is against the law I mean you have to tread lightly if you're if a homeowner is in bankruptcy uh the bank has to you know they're protected and you're not allowed to pursue or you know collect from someone and the bank gets a little worried about that until this this motion has been granted and then I'm sure they still tread a little bit lightly because a homeowner could still claim harassment or something yeah okay now just let me give you an idea of all you have to do and I'm going to be covering a lot of this on uh Saturday on Saturday I am going to um minimize this page because I want to get I'm GNA be te talking about making offers and if if there's if the house is not listed with any kind of real estate agency or brok brage then all you need is a purchase and sale agreement now there is another thing when I talk about writing contracts on Saturday we there's no way we could talk about it tonight but on Saturday if a home does have equity and it's actually in foreclosure there is a California uh civil code that says we have to use a California Equity purchase agreement and that's if they're under default and they have equity and over the last several years there wasn't hard there wasn't any Equity uh in these homes if people were in foreclosure so you actually didn't have to use the California Equity purchase agreement now I'm going to have a blank copy and and I'm I'm going to teach you how to fill one out Saturday um but if it's just a hidden Market property and it's not uh and it has no equity or whatever you can use just a standard purchase and sale agreement so I'm just gonna give you an idea of what that looks like the one I use okay so I just use a contract for sale of realy I uh it has Clauses built right in that says that uh you know if the title if the title doesn't check out you know it's a kind of an escape Clause it says it has to have good title It also says that it once we make an offer and get a signed contra just like this is an all cash offer buyers purchasing the property and as is condition sale to include all existing fixtures and appliances and this offer is subject to the approval of an inspection by the purchaser so we'll be going more over that on um on Saturday so when you make an offer on a uh a bankruptcy property it's just like making an offer on anything the first thing you got to do is know how much is owed against the property so let's say that the house and I know that we're not going to talk in 500 or 1 million just for training purposes so right now we're saying that um the house if it's worth a 100,000 after repair value and the balance of the loan is 50 then we're just going to make a a an offer on a purchase and sale contract directly to the owner and we're just going to set up a closing at the title company and the title company will get the payoff from the bank for the HUD one statement and we show up in closing and it's just like any other type of transaction but let's say that the house is worth a 100,000 after repair value and the balance of the loan is 120,000 obviously we don't want to pay 120,000 for it so we're going to offer say 70,000 on a short sale and then we're going to submit it to the bank after the owner signs it so the owner has to agree to sell it and agree to sign the contract and then we're going to send it send it to the bank and we're going to have a cover letter that has the bankruptcy case number uh we're going to put in there that we know that the automatic stay was lifted and uh and that we would like to buy the house from the homeowner we we're under contract and we've submitted it to the bank for their approval okay so and like I say we I'll actually go through filling out contract and stuff on Saturday uh because we' pretty much covered this week we've covered uh pre-foreclosure we've covered probates we've covered bankruptcy properties and uh so Saturday we're gonna really focus on the hidden Market because the reason we have been teaching you all those the pre-foreclosure the probate the bankruptcies is because a lot lot of these hidden Market properties we find are fall under one of those three categories so it's uh it's good to know the process for all three of those so Saturday we're really going to focus on how to you know how to buy these hidden Market properties and uh all right so I think we've got just a few minutes left I say we concent Cate on questions and answers this would be the time to ask a lot of questions and let us answer them and and you can jump in there too Lisa if you want to answer any or help you know so anyway do we have any new questions yet uh let's see I've got a couple coming in right now will probate be covered in depth on Saturday well were they there last night uh we covered it pretty much in debt last in in detail the only thing we didn't cover about probate yesterday is just how to write the offers and we're going to cover that Saturday um some people are asking whether this webinar is going to be posted uh online and there will be a link made available all I need to do is get it posted up to Facebook and then uh I will forward out the link to excuse me posted to uh YouTube and I'll get the link forwarded out both to my list as well as Tony so it should be available tomorrow okay and a question to how can you listen to last night last night was a live training session so that was not recorded uh here's a question for you is probate uh Tony is is probate recorded anywhere that we can go back and all watch it I'm sorry that that was related to me no that the probate uh class was not recorded are there any other questions for Tony I will be covering some probate on Saturday uh you know because we're going to get into the contract writing the