Bankruptcy...Subject 2 Purchase
The seller was in Chapter 13 bankruptcy......The bankruptcy trustee lifted the motion for the mortgage company to pursue foreclosure. After being contacted by the seller we paid the delinquent payments and reinstated the loan two hours before the auction.........We took the deed by land trust with two ppl named as beneficiaries.......Now we have the property under contract to another buyer.........But we understand we need the trustee to dismiss the property from the bankruptcy plan.......He will not discuss the property with our attorneys, even with the authorization to release info form but will only speak with the debtors attorney.......
Have you had experience with this type of situation....Views? Opinions please........
Thanks.....
Hello John,
It is indeed my pleasure to be able to intelligently respond to you!
In the bankruptcy plan there is a section:
B-11 Other provisions of the Plan.....None
The debtor will not sell real property without an order from the Court. Check if applicable.
This section was not checked. Would you say the debtor now has the right to sell or am I mis interpreting?
Thank you John for your opinion.....
Hell Guy, I am new at investing and I have a friend that just got an LLC. What were some of the prices for Insurance and also what kind of issues are there for refinanicing? Thanks for any help you can give
You should have "commercial" insurance regardless of what entity owns it...especially as you add properties to your portfolio. There are numerous strategies to offset any cost difference between such coverage and "personal" policies. (Higher deductibles, combining properties under one contract, etc...)
Best regards,
Tim
Thank you for the information.
This post started off with questions about an LLC vs. DBA, but let me ask you another question about insurance.
Can/will the same agent that wrote my insurance also write a Commercial policy, or are there special agents that only work with commercial policies?
Dumdido,
It really depends on the contracts the Agency has with the respective cariers. There is a common misconception that an Independent Agent can "shop the market". Actually, many/most independents only hold a few contracts with certain carriers. Due to minimum production and technology support issues, most carriers will only appoint Agents/Agencies that will be actively pursuing and writing business for them.
Tim[ Edited by norrist on Date 02/02/2005 ]
All you need to do is get a business license from your city. You DBA
Then this business (you)will be the company that manages the properties.
Also I have always found commerical insurance higher and have been told this by a number of agents.
...untested?
You may need some legal advice from an attorney that is versed in REI...
I realize this article may not directly apply, but much of your concern is addressed in it:
http://www.thecreativeinvestor.com/commercial/modules.php?name=Articles&file=article&articleid=472
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Best regards,
Tim[ Edited by norrist on Date 01/15/2006 ]
The second-to-last paragraph in this article should re-emphasize the first article:
http://www.thecreativeinvestor.com/commercial/modules.php?name=Articles&file=article&articleid=438
[addsig]
Insurance would have to be in LLCs name as first insured otherwise a claim could be refused. Not as an additional insured. You will need commerical insurance which will cost more.
Why even do what you are thinking. You would need a seperate bank account for LLC and follow the rules exactly and then with the financing in your name it will look like the LLC was only to protect the house. It would be easy for a lawyer to void the protection you think you are getting from the LLC.
So you have more cost and little to no extra protection.