How Do We Protect Ourselves If Owners File Chapter 11 Or Divorce?
I am working on a l/p and I am trying to foresee anything that could come up. If the owners file Chapter 11 or 13 or get divorced, or there is a death, what can be written into the contract to guarantee it will stand as written and my interests will not be affected?
Thanks
SKHunter,
You can't....
BUT...You can still evict...
I went through just this...it takes a little longer and I had to represent myself in FederalCourt....but I got TheBastard out...fast, even though she worked for the CountyCourtSystem.
...as always,
GoodInvesting, Rocky
Thanks Rock, but I was wondering about the people who now own the house I want to l/o.
They are in another state and their house here has been empty for 6mos. I am concerned that they may end up in Chapter 11 or 13 and where would that leave me?
SKHunter,
Oh!!...
...now I know what you mean...SORRY.
You explained it correct...
I had a BrainFart!!!
THIS IS A BIG PROBLEM...for REIs
My wife and I talk about this ALL the time.
We have never bought a house on a L/O.
The only way we can see this resolved is that the owners send or fax their previous months statements...
To see if the payments have been made....
....this statement CAN be altered!!
WHAT TO DO???
Make those payments yourself and cut another check to the owner, for their profit...
Make payments through a trusted 3RD party...Lawyer, Accountant or some form of a third party payment company...
....other than that...I AM AT A LOSS...
...as always,
GoodInvesting, Rocky
Thanks, Rocky.
I think I will set it up where I pay through an internet banking account and then it is transferred to the lender. Has anyone done this? I think it may work.
One more question. I am reading myself into confusion. Would a contract for deed be better with me as the buyer? I want to live in this one for a yr or until I find something better. I am not sure of the benefits compared to a l/o for me. Thanks.
Two things. Secure the deed. have them deed the property into a Land Trust with them as Benificiary and you then execute the the agreement. Or have them execute the deed into Escrow.
Record a mortgage or deed of trust against the property. I do them for all my subject to deals.....Just in case the seller decides to go sideways in the future.
Just a few ideas. I like the trust better because it sets them up for you to get the deed later.