Buying house BEFORE bankruptcy?
Question Details: I have been debating BK for about a year since my husband & I separated & our home foreclosed. Renting since, but just got great opportunity to owner finance house. If I do, can I then file BK a month or so later? What are risks to me and to owner/financer?
Bankruptcy Law Answers
I am a lawyer in CT and practice in this area of the the law. Owner financing is a great opportunity for someone in your situation. There are no real risks to owner financing if the owner is not going to be running a credit check on you after to file BK. If you have the contract signed and the deed is transferred to you, then you should file at that point. Once you file, the owner will not be able to get out of the deal unless there is something in the contract that permts the owner to get out of the contract if you file BK. However, this would not be a clause in the contract so i wouldnt worry. You should be able to file BK and buy the home from the owner. The owner should not care because he will have a security interest in the home should you fail to pay.
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