If i sold my home via owner financing and the buyer filed bankruptcy, what are my options?
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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 13 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.
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