Legal Question in Real Estate Law in Tennessee

A friend has been making mortgage payments on a seller financed property in Tennessee only to find that the seller has not been making the payments to their mortgage company and has file for bankruptcy, including the home in the bankruptcy. It is the residential home for my friend and his family and they are desperate to know what legal options they have. Thanks!


Asked on 2/09/12, 4:47 am

1 Answer from Attorneys
J. McMurray Johnson Lewis & Johnson, Attorneys and Counselors at Law

Any property that is included in a bankruptcy proceeding falls under what is known as an "automatic stay" which means that the property is frozen until the bankruptcy trustee determines what to do with it. Your friend needs to retain a bankruptcy attorney to file something with the bankruptcy court asserting their interest in the property before it is used to payoff the owner's creditors.

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Answered on 2/09/12, 11:53 am


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