After purchasing a home on a land contract the owner has now declared bankruptcy. How does this affect us in our contract with the owner?
After purchasing a home on a land contract the owner has now declared bankruptcy. How does this affect us in our contract with the owner?
Hopefully the contract was recorded and you were given formal court notice of the bankruptcy so that you can protect your interests in the home/contract. You will unfortunately have to become involved with this mess because you have a claim and will want the court (through a bankruptcy trustee) to keep the contract in place. Your contract may specify what happens in case of bankruptcy; unfortunately they usually only specify if you as buyer go bankrupt. It is worthwhile to get an attorney involved to make sure your interests in the home/contract are protected.
Stephen Messutta
Stephen Messutta
7458 N. Harlem Avenue
Chicago, IL 60631