If i sold my home via owner financing and the buyer filed bankruptcy, what are my options?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

If i sold my home via owner financing and the buyer filed bankruptcy, what are my options?

If I had the buyer sign a deed in lieu of foreclosure up front and it is sitting in an escrow company and can be exercised if the buyer is more than 30 days late. Can I record it and avoid the foreclosure process?

Asked on November 4, 2011 under Real Estate Law, Utah

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

If you sold your home via owner financing and you are in the first secured position, I suggest that you consult with a real estate attorney about the bankruptcy filing of the seller and how to proceed with foreclosing upon the mortgage assuming payments are not being made to you. You cannot do anything due to the automatic stay regarding the bankruptcy in place.

You do not want a deed in lieu of foreclosure if there are subsequent liens on the property after your trust deed. If you accept such a deed, you take the property subject to the later liens. You want to eliminate them by way of a foreclosure to clean up title when you get the property. Good luck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption