Posted by Rich-CA on October 04, 2007 at 11:53:04:
First a disclaimer. I only address legal issues either because I have been involved in or read about a case or from the point of view of logic - which does not always apply to the law. I am not a lawyer.
My brother in law is a tax attorney and has talked about several clients who were also filing bankruptcy and if I recall what he said accurately, if ownership of property is transferred in close proximity to a bankruptcy filing, the court MAY order it reversed as this is assumed to be trying to hide assets (such as obtaining untraceable cash from a sale).
Deed Subject to Mortgage and Bankruptcy - Posted by Steve
Posted by Steve on September 19, 2007 at 12:54:42:
I recently bought two homes from someone deed subject to mortgage.
I have maintained both mortgages current. I have fixed the properties and begun to market them. I would like to keep the original financing in place until sold.
The seller of the property has some other properties he is behind on and may seek bankruptcy protection to help save those other properties. My question is this, how am I affected should he file bankruptcy while the loans are still in his name on the properties I purchased subject to?
Re: Deed Subject to Mortgage and Bankruptcy - Posted by John Merchant
Posted by John Merchant on September 19, 2007 at 16:19:56:
His BK Trustee could very well demand you deed him back both properties and you might find yourself in a legal battle with the Trustee if he does file Ch 7 or 13.
Suggest you might want to sit down with this Seller and see if you might make some kind of deal on all his properties so as to help him avoid BK filing… so you don’t have to fight the trustee and other creditors.
Re: Deed Subject to Mortgage and Bankruptcy - Posted by Rich-CA
Posted by Rich-CA on September 19, 2007 at 16:19:18:
That would be an attorney question rather than a forum question. The attorney would be able to tell you if the name on the deed matters in your state regarding secured debt.
What if you left out the subject to part of the deed that is transfered to the new owner,wouldnt that relieve the new title holder of having a mortgage lein on the property?