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    sasquatch169's Avatar
    sasquatch169 Posts: 1, Reputation: 1
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    #1

    Apr 27, 2008, 09:29 PM
    Contrzct for Deed - Seller Bankruptcy
    If you're current on your contract for deed payments and learn that the seller is filing for bankruptcy, and wants you to pay off the contract, what are your options? This is for recreational land in Minnesota.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Apr 28, 2008, 05:47 AM
    What are the terms of the contract ? Are you gaining equity in the property which would allow you to file a lien on it for your equity?

    If there a loan on the current property?

    But to be honest, your best bet, reach a settlement with them for some amouunt, that will get you clear title to the property.
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
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    #3

    Apr 28, 2008, 06:22 AM
    As long as you have a contract, they can't accelerate the loan. But, again, according to the terms of the contract, it may be used to pay of debts unless you can prove you have an interest in the property.

    I would see about getting your own financing to pay off the balance of the contract. I would also file a Lis pendens with the county clerk to safeguard your interests.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #4

    Apr 28, 2008, 06:52 AM
    Also assuming the seller does not have a lien on the property, they can do a owner finace, then you own the property and if he goes bankrupt they take ownership of the loan document.
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