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We're buying a house on contract for deed. The owner of the house is filing bankruptcy on his business. He hasn't filed yet.
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No. You have to continue to honor the agreement. The Trustee make take over, but you should be unaffected.
Answered on Jul 05th, 2017 at 7:29 PM
It sort of depends on how the contract is written and what the status of the payments are in. Most times, a bankruptcy trustee takes over the ownership of the contract and all future payments go there. Might be a real good idea to look at getting your own financing of the property so that you can buy out the contract before the owner files bankruptcy.
Answered on Jul 05th, 2017 at 7:28 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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The first thing about any land contract is your rights are subordinate to the owner's mortgage. So if the owner is in default on the mortgage, the property can be foreclosed. If there isn't a problem with the mortgage there are two possibilities: If you had the land contract for less than 5 years, you're treated like a renter and your land contract maybe terminated. If you had the land contract for 5 years or more, you're treated like the owner with a mortgage to the owner. If you continue making the payments, you will buy the house under the land contract.
Answered on Jul 03rd, 2017 at 5:15 PM
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If you are current on your payments and all of the loan documents were done correctly, then the court can not take your home. It might be worth paying an attorney to look at the document and assess your risk. You do not want to keep making home payments if you might lose it.
Answered on Jul 03rd, 2017 at 5:14 PM