If I’m an owner of a home that was sold on land contract and the purchasers have made all their payments on time, what to do if I recieved a letter stating that they’re filing for Chapter 7?

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If I’m an owner of a home that was sold on land contract and the purchasers have made all their payments on time, what to do if I recieved a letter stating that they’re filing for Chapter 7?

What does that mean to me and what will happen to the home?

Asked on December 8, 2012 under Bankruptcy Law, Michigan

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

I suggest that if you are still owed money on the landlord purchase agreement for the balance of the seller carryback that you consult with a bankruptcy attorney if the buyers stop making payments to you under the purchase agreement.

Under the law, the buyers are required to make payments on the home assuming your loan is secured and if not, you then need to make a moiton for leave with the bankruptcy court to foreclose upon the security for the loan, namely the home.


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