Legal Question in Real Estate Law in California
We bought a brand new house in 2007. Last year the builder filed for bankcruptcy, what effect does this have with regards to our house and property? This company is now on default because they abandoned the entire development. Lately, we have received letters from realtors that our property is on pre-foreclosure. We checked with our lender and the county recorder telling us we are not because we are on time on our payments and have no reason to be.
2 Answers from Attorneys
I have no idea what the issue is. I would have to examine the relationship between the development and your property to understand.
The Law Office of Daniel Bakondi
870 Market Street, Suite 1161
San Francisco CA 94102
IMPORTANT NOTICE: This communication may contain confidential information, privileged information, or attorney work product. If you are not the intended recipient or received this message in error, any use or distribution of this message is strictly prohibited and unlawful. Please notify the sender immediately, and delete this message. No attorney-client nor confidential relationship is created through this communication. Nothing communicated or provided constitutes legal advice nor a legal opinion unless it so specifies and written agreement for attorney services has been entered into. Your issue may be time sensitive and may result in loss of rights if you do not act in time. Thank you.
The results of business bankruptcies differ, in part depending upon whether it is filed under Chapter 7 or 11, but in many cases a builder/developer going bankrupt these days will, at least, be relieved of most responsibilities for incomplete developments in the bankruptcy (and if it is a Ch.7, the liquidation. This is not universally true, and certain obligations toward developments and the residents may be protected and preserved in some way. If you feel the builder-developer has major unfulfilled responsibilities, like performing warranty repairs or finishing the golf course, you might want to contact a bankruptcy lawyer, perhaps sharing the cost with similarly-affected neighbors. Sometimes filing a claim is necessary to protect your interests in a bankruptcy.
As to the letters from "realtors" (this word is a trademark of a trade group of real-estate brokers and salespersons who pay dues to be members and use the term "Realtor"), I am 80-90% sure the senders are working off some kind of mailing list and trying to fish for business. If you send me your county and assessor parcel number by e-mail privately, I can check an attorney's data base and let you know, no charge.