doing a land contract the other party is fileing bankrupt she has a mortgage on it my contract is filed in cou

Question

help.what can i do to save my house .

Answer 1

Talk to the seller's bankruptcy trustee about assuming the mortgage. Let the trustee, who is an attorney, negotiate with the mortgage company such that you assume the mortgage and the land is deeded to you and away from other creditor's.

Think about it - the mortgage company will file motions to throw out the automatic stay and proceed with foreclosure on the land. Offer some upfront cash to the trustee - maybe 5% of the assessed value of the land and see where it goes. You can do this yourself or you can retain an attorney to do this for you. Just make sure your credit is strong enough to assume the mortgage.

If I'm completely off base, I will hear it from other posters - but this sounds like a reasonable plan to obtain the land without waiting out the bankruptcy process....

Answer 2

One thing you can try is to contact the mortgage company and see if you can assume the loan. This will work if the property has little value over the balance of the mortgage.

If there is equity, other creditors will want to seize it for their own purposes. But if there is equity, the owner could use it to refinance her way out of trouble.

Banks really don't want another forclosed house in the inventory so you might be able to work something out.

I assume you have made a downpayment, which is now at risk. If that is the case file your claim with the bankruptcy court. SInce your debt is unsecured, there is little likelyhood that you will get your money back.

Answer 3

You need a lawyer! Right now! With luck, you may be able to assume the existing mortgage.

Your first mistake was doing a CFD on an encumbered property. You should have had an attorney go over the agreement before you signed.