Legal Question in Bankruptcy in New York

Re: realestate

Landlord would hold the mortgage note just like a bank or mortgage company, and would have all the rights of any purchase-money lender, which are numerous and powerful. He could indeed commence a foreclosure proceeding under the terms of most mortgage notes if you go bankrupt; he may even be able to petition the court to lift the automatic stay as to him to pursue foreclosure proceedings during the pendency of your bankruptcy case, and the court just might allow it.

However, if you file for bankruptcy and, with the court's and your attorney's approval, reaffirm your mortgage, why should your landlord care about the bankruptcy? It sounds like he wants the money, not the property.

Can you talk to Landlord? Communication forestalls many problems. Most people I know in Landlord's position would appreciate an honest conversation; it would save everyone a lot of trouble.

Also, if time is not of the essence in the real estate deal, you could file for bankruptcy and then, after discharge, purchase the property. Landlord is now in a very secure position.

Good luck.

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