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ctrmrz31

Bankruptcy!

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Has anybody had a seller file bankruptcy while in the middle of a sandwich deal?

How would one protect themselves from it?

cruz or brandon

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While it hasn't happened to me personally, I know of someone who did have it occur. Four months into the lease the seller advised her that she was filing BK, and that the house payment was two months in arrears. To cut to the chase she advised her tenant/buyer of what was happening, and offered her a discount if she would exercise her option early. The t/b couldn't, so she returned her $3K option money and moved on, wiser but poorer for the experience. It was a lesson learned and one that could have been avoided.

She was making her payments directly to the homeowner. Had she been making the payments directly to the lender, or to a third party escrow company, this problem was avoidable.

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I guess Michael C's response takes care of that...

 

Mike P. :blink:

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I replied to the wrong post, I meant to reply to this post, sorry guys!

Brandon or Cruz

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