Bankruptcy
Question:
Currently I have three families (tenants) living in my homes purchased as investments. One has the Lease option and the two other are paying straight out lease. I also have another family who did a wrap around (still in my name but they are paying the note) (Deed Of trust is in their name) my question is If I file bankruptcy where does this leave them and me ?
[ Edited by annatrevino on Date 02/09/2006 ]
Hello
Am I in the right area?
It is just hard to say exactly becuase much of this is not black and white and widely tested. I would think that the one with the wrap mortgage is OK. Your straight tenants could be in trouble if they do not have a lease (they are month to month) and there is equity in the property. No idea what happens if there is equity but they have a lease. I would think that leases would have to stay in place. One one to worry about is the LO. You need to convince your trustee that they have equitable interest in the property - which I would hope would not be difficult. My best shot.