Shortly after original homeowner lost his house he filed for bankruptcy. The wheels of bankruptcy court grind slowly and trustee just recently learned that house had been sold at auction.

And... The foreclosed upon owner had a nice hunk of equity in 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 bankrupt home owner's creditors.

Can he do that?

Yes! Under power granted by The Durrett Rule trustee can show you door and claim home in name of bankruptcy court.

You, see 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 bankruptcy court, you should be able to recover money you paid for home. Of course... no interest is paid on money for time it is tied up in court and you will not be able to recover fix-up costs or attorney fees needed to get your money back.

Buying at foreclosure sales is not for sissies! Stick to an easy money tactic... buy in preforeclosure period.

It would be unethical and dishonest to enter into a lease option deal with a couple whose credit could never be cured even with a miracle drug.

We are not aware that it has happened, but we fully expect to see a lawsuit filed against some careless investor who does a lease option deal with someone whose credit is beyond redemption.

That renter/optionee has been lead to believe he can buy home and when he finds out he can't we are sure some hungry lawyer will rush to their rescue.

We can visit that investor in jail and bring him a copy of a "no money down" book with a file hidden inside.