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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2844
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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Am in a lease with option contract on a residential property

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Am in a lease with option contract on a residential property that I live in. Owner almost lost it to foreclosure in April. Bank contacted us and with his agreement, we pulled it out of bankruptcy and have been paying the bank directly ever since. We have just over one year left on our option. The owner has now filed Chapter 7 bankruptcy. The bank has contacted us and wants to finance us to buy the property. How should I proceed to insure that our rights are protected. The bank thinks that both the trustee and our landlord are willing to abandon the property. What does that mean and what if they don't. There is no equity in the property and is probably actually upside down at this point.

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

The trustee is only looking to liquidate property if there is equity in it. if there is not, the trustee routinely abandon's the bankruptcy estate interest in the home.

Terry L. :

If the trustee wants to liquidate the property, he would have to take it, subject to the contract you have with him.

Terry L. :

Therefore, you would likely be the first person they contact to sell the property to.

Terry L. :

Since it is upside down, the home should pass thru bankruptcy, and you can proceed with the purchase with the owner and bank.

Terry L. :

Shouldn't be any problems.

Terry L. :

As always, use an attorney to assist you with the sale, to make sure all issues are addressed.

Terry L. :

Let me know if you have any other questions.

Terry L. :

Thanks

Terry L. :

Terry

Customer:

Thanks, XXXXX XXXXX there anything I should do at this point other than contact an attorney here? Should I go to the creditors meeting next week or discuss this with the trustee myself or have an attorney do that?


 

Customer:
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