2007-03-22 05:44:19 · 7 answers · asked by covenantglobal 2 in Business & Finance ➔ Renting & Real Estate
If this was a sale and you own the property (ie you have title) then nothing should happen to you. Your loan is an asset of his and therefore available in bankruptcy to pay off his creditors. One of his creditors will probably become owner of your loan as payment toward the debt they were owed from him that he has failed to pay. As long as you live up to the terms of the loan (ie make payments on time) life goes on for both parties.
If this was a land contract or somehow he holds title, not you, you should still be ok as long as you live up to all the terms of the contract. Even a successor can't refute your contract without a legal reason. The original owner made a contract with you and as long as you perform, neither the original owner or a (bankruptcy) successor can void that contract. The legal successor has rights no different than the original owner.
2007-03-22 16:21:49 · answer #1 · answered by Rab 1 · 0⤊ 0⤋
Hopefully, you have a recorded land contract, otherwise, the property can be folded back into his other assets and liquidate for the benefit of creditors with a priority claim. If your contract is recorded, then you may have an opportunity to negotiate with the trustee in bankruptcy to pay it off by trying to get a laon with a bank based on recorded land contract. If you contrcat was never recorded, then i strongly suggest you seek legal counsel to determine what claim you may have .....might be the only thing you can do is personally sue the owner and since he is bankruptcy, what woudl be the point......get a real estate lawyer familiar with these kind of deals....
2007-03-22 12:59:55 · answer #2 · answered by boston857 5 · 0⤊ 0⤋
If I'm not mistaken when someone files Bankruptcy, the bank pays off there assets but then becomes the owner of them. If I were you I would contact the bank and let them know what the deal is so they might be able to work something out with you and you don't lose the property
2007-03-22 12:49:51 · answer #3 · answered by Cowboy 2 · 0⤊ 0⤋
Depends on whose name is on the title. If your name is on the title and you just owe the other people money then nothing should happen. The debt may be purchased by a bank. You may have to start paying the bank rather than the original people you owe.
If the other people you borrowed the money from are on titl than you are basically screwed!
2007-03-22 12:54:10 · answer #4 · answered by GEE-GEE 5 · 0⤊ 0⤋
If he has a mortgage on the house, the bank will take it if he claims bk. If he owns the house with no mortgage on it, you will have a claim in bk court. Go to http://www.mortgageawareness.com , where it explains the do's and don'ts when getting a land contract.
2007-03-22 17:32:04 · answer #5 · answered by Anonymous · 0⤊ 0⤋
You must put a lien on the property. Consult your attorney.
2007-03-22 12:47:32 · answer #6 · answered by Colette B 5 · 0⤊ 0⤋
u both are screwed
2007-03-22 12:47:22 · answer #7 · answered by Bailey 5 · 0⤊ 0⤋