Legal Question in Bankruptcy in Texas

I am looking at owner financing a home from a family who is about to file bankruptcy my question is how can we go about this if we owner finance and they file will they take the house from me and him if we have a legal document drawn up? (and i can not get a home loan not an option owner financing is my only way to buy a home) Thank you


Asked on 2/04/11, 7:02 am

1 Answer from Attorneys
Mark Dunn Mark D. Dunn

When the family files bankruptcy, the house becomes part of the bankrupt "estate" unless it is exempt, which it almost certainly isn't (if they've sold the house, and are receiving monthly payments, and somebody else is living there, it isn't their homestead).

What would PROBABLY happen is that the trustee would take the house, so to speak, and you would begin making the payments to HIM each month.

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Answered on 2/04/11, 11:31 am


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