Legal Question in Real Estate Law in Indiana

Land Contract Bankruptcy

I have a question I was hoping you could help me with. I recently purchased my first home in August of 2008 on land contract. We made a down payment and have been paying monthly installments towards our balance. We just got a phone call from the seller that they filed bankruptcy and that we might lose our down payment and the house. The seller said that they were never late with their end of the payments to the bank and that all the money we deposited was put towards the mortgage on our house. What should we do? We signed both a land contract and a purchase agreement that states that we can take over the mortgage if the bankruptcy is pending, but we were never informed the seller was filing. Do we have any legal recourse to keep the house or take over their existing mortgage? Thank you so much for your time and help.


Asked on 4/16/09, 11:07 pm

1 Answer from Attorneys
Jay Rigdon Rockhill Pinnick LLP

Re: Land Contract Bankruptcy

Take your contract with this information to an attorney right away. Your home is definitely at risk, and you can't afford to wait on an investment like this. You can't force the mortgage holder to accept you as the new debtor.

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Answered on 4/19/09, 2:24 pm


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