For investors interested in adding real estate to their portfolios, foreclosed properties can be an extremely attractive option. Purchasing a foreclosed home does involve more steps and concerns than a typical home sale, especially if the previous owner declared bankruptcy during the course of the foreclosure. Robert A. Schwartz, a bankruptcy and real estate lawyer with more than 30 years' experience serving Rochester, NY clients, explains why this situation may be somewhat different.

The timing of the foreclosure can be impacted by a bankruptcy filing. Because every bankruptcy includes an automatic stay that prohibits lenders from pursuing any collections activities, the property won't be available until the bankruptcy is completed. In some cases, this process can take up to a year.

Even after the final dissolution, you may still encounter problems with the title stemming from the previous owners financial difficulties. Some liens on the property can become your responsibility, such as those imposed by the IRS to cover back taxes and other municipal fees. These types of debt are typically immune from bankruptcy protection, which means the previous owner may have been unable to discharge them. Before you make a bid on a bankruptcy foreclosure, make sure you factor any outstanding liens into the cost of the investment.

Whether you're looking for an ideal property, facing a home foreclosure, or considering filing for bankruptcy, Robert A. Schwartz has the training and expertise to ensure that your interests are fully protected. He takes the time to fully understand your needs, and will do everything possible to help you achieve your desired outcome. Visit his website to see his full list of services, or call (585) 351-2929 to schedule a consultation today.