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    jevitag's Avatar
    jevitag Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jul 17, 2009, 05:41 AM
    Lease Purchase and foreclosure or bankruptcy
    If I get into a lease purchase situation, put a non refundable earnest money deposit
    Down and the owner of the home either files bankruptcy or is foreclosed upon before I close and take possession of the home, what would happen to my lease purchase
    Situation?
    excon's Avatar
    excon Posts: 21,482, Reputation: 2992
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    #2

    Jul 17, 2009, 06:55 AM

    Hello j:

    It would become null and void, and you'll probably have to sue to get your earnest money back.

    excon
    AK lawyer's Avatar
    AK lawyer Posts: 12,592, Reputation: 977
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    #3

    Jul 17, 2009, 12:17 PM
    Quote Originally Posted by excon View Post
    Hello j:

    It would become null and void, and you'll probably have to sue to get your earnest money back.

    excon
    That depends on whether the option is recorded. If so, you may be protected in bankruptcy.

    And you can't sue if the landord files bankruptcy. You could only file a claim in the bankruptcy proceeding.
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