Is it risky to buy a home from people who are in preforeclosure and filing for bankruptcy?
My husband and I are first-time homebuyers. The “owners” of the home we are most interested in buying are in preforeclosure and are filing for bankruptcy. I put “owners” in quotes, because they still owe the full home value on their mortgage. They want to stay in the home five days past closing to give them time to move their belongings out once they are certain the deal has gone through. Our concern is that they will trash the place on the way out, after we have already closed, and we will have no real recourse. Even if we sue them, they won’t have any money to give us, since they are bankrupt. We are also concerned that it will be a hassle to get them to actually move out. Are we being overly cautious, or is it risky to buy a home from people in this situation? Are there particular ways we can protect ourselves? Our real estate agent doesn’t seem to think our concerns are very well founded, so any advice will be appreciated. Thanks!