QUESTION

Does a Trustee typically give a tenant the ability to continue to rent and potentially purchase a bankrupt estate?

Asked on Oct 13th, 2017 on Real Estate - California
More details to this question:
The residential property I live at in San Diego, CA is now a part of the bankruptcy estate. The owner believes I may be able to continue to lease the property since there is pending litigation regarding the ownership of subject property. My lease is currently month to month. Future occupancy will be determined by the Trustee. Will it benefit the Trustee to continue to have me live there? Will I get an opportunity to purchase the property? What are my rights when contacting the Trustee?
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1 ANSWER

Real Estate Attorney serving Oakland, CA at Sack Rosendin LLP
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There is nothing typical in your situation. Call the trustee immediately and tell her or him that you will continue to pay the rent, where should you send it? and that you want to buy the house? how much does the trustee want? Whatever is said in that conversation, confirm it in a letter in writing with your signature (not a text or email). If the trustee does not take your call or return your message today, send that letter this weekend. The trustee only gets paid if she or he collects some money from the debtor's property. Your rent payments will be great news to the trustee. Selling to you saves the trustee the 6% commission, and at least a month of marketing and inspections by a new buyer who is not familiar with the house the way you are. Good idea. Good luck.  If you appreciate this free advice, please remember to refer me to any friends or acquaintances who need a lawyer. Referrals are still our best source of new business. Do you have a revocable living trust to protect your heirs against probate? Probate takes forever, is expensive, and is annoying. Do your family a favor. Set up a trust, and put all your property, especially any real property, into the trust. Since it is revocable, you can change it, add to it, take property out of it, or even cancel it completely, at any time. We set up such trusts, provide a pour-over will as a back-up for any property that does not make it into the trust, provide you with blank durable powers of attorney for health care and financial decisions, in case you become incapable of making such decisions while still alive, and convey one piece of real property to the trust, usually the family home, for $1500.00. If you would like to hire me to do this, let me know, and I'll send you a list of the information I need. Dana Sack    
Answered on Oct 13th, 2017 at 9:59 AM

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