Legal Question in Bankruptcy in California

Re: Landlord's Business Bankruptcy's Affect on Tenant

It is possible through a motion that the bankruptcy court will allow sale of the home to you. However, there may be a problem if there is either any positive or negative equity or if the bankruptcy court thinks you are buying at below market value. Note that if you buy the home before he files bankruptcy it is possible that the court could set the sale aside as a fraudulent transfer. Also note that the finance company may move for relief from the automatic stay and foreclose upon the home. You would then have to buy the home from them or be evicted. You might try to take advantage of a short sale. You buy the house for what is owed, or sometimes for even less than what is owed, and the finance company agrees to not seek a deficiency. I would need more info to advise you further. Feel free to call.

Re: Landlord's Business Bankruptcy's Affect on Tenant

The real issue is: what's owed on the house and what's it worth? If there's a lot of equity, the bankruptcy trustee can sell it, and make a profit (after the cost of sale i. e. commissions to realtors, etc.) then the bankruptcy trustee will want to sell the house. The exemptions on are not large enough to cover a house that the bankruptcy debtor doesn't occupy. If there is much equity in the home. So the real issues are the debtor's equity in the home, and can you qualify for a loan to buy the home.