If a property is in an open bankruptcy, will sale of property benefit owner or all money go to bankruptcy?

Question

I want to buy a small lot in a resort. The resort filed foreclosure for non-payment of dues not knowing (or checking to see), property has a mortgage. Currently deed is in resorts' name, meanwhile, owner of property has filed bankruptcy. If I buy property from owner, will any amt. over loan balance go to bankruptcy or to property owner? Or, can I even legally buy this property? Is there a way to find loan balance since bank can't give out info. due to privacy laws?

Answer 1

Owner can NOT sell the lot, if his/her bankruptcy is still open.  The bankruptcy Trustee administers the debtor's estate and is responsible for liquidating any assets (selling the lot).  You need to get the owner's bankruptcy case number and court location, and contact the trustee overseeing the case.  

If the trustee sells you the lot, any proceeds over the loan balance will definitely go towards paying other creditors of the bankruptcy. Owner gets nothing.

PS - bankruptcy filings are public info, so the current mortgage amount will shown in there somewhere.