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#1 ErikOk

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Posted 03 May 2013 - 05:13 PM

How have you all handled potential tenants with Chapter 13?  I received a worksheet today from the lady that takes information for me.

 

I have a potential tenant/buyer with the money down for a cooperative purchase (around $5,000). According to the info I received he has gone through a divorce & has just filed Ch. 13.

 

I haven't contacted him yet, but was just wanting to get feedback from those on the forum that have had experience with tenant/buyers & bankruptcy.

 

Would there be any issues with the structuring of his Ch.13 and the fact that he has the money and is willing to put that toward the CA? By that, I mean would it be frowned upon,  or make the CA a possible pain for me?

 

BTW, the lease is 2 year term.

 

Thanks,
Erik

 

 

 



#2 MichaelC

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Posted 03 May 2013 - 06:19 PM

Good question, Erik, and a complicated one that can best be answered by his attorney, the BK trustee, and/or a mortgage broker.



#3 bwalston

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Posted 13 May 2013 - 11:34 PM

How have you all handled potential tenants with Chapter 13? . . .Would there be any issues with the structuring of his Ch.13 and the fact that he has the money and is willing to put that toward the CA? By that, I mean would it be frowned upon,  or make the CA a possible pain for me?

 

BTW, the lease is 2 year term.

 

Thanks,
Erik

 

 

 

Erik, most lenders will require the applicant to be two years OUT of the BK before considering a loan.  It sounds like your potential T/B is just beginning the process so he/she likely will not be able to get permanent financing when it's time to exercise the option.



#4 MichaelC

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Posted 14 May 2013 - 06:33 AM

Erik, have you and the homeowner considered a two year lease option with the t/b having the option to extend an additional year.  If he chooses to extend then he would be required to pay the homeowner additional option money, whatever that agreed to amount is, say half of what was originally paid.  That buys him time to buy the house.



#5 pilot76180

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Posted 20 May 2013 - 03:21 PM

I know this is screwed up...but...here's the deal...

CH 7..you are looking at 3 years out of the BK

CH 13..the lenders look at 1 year on time payments to the trustee and permission from the court to acquire debt. 

We had a great family that we got financed in Feb and we were under the gun to get hem done before the 13 was dismissed....the reason????

Once the 13 is dismissed they need 3 years to get financed...

Yeah...it makes no sense..


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#6 ErikOk

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Posted 20 May 2013 - 09:10 PM

I know this is screwed up...but...here's the deal...

CH 7..you are looking at 3 years out of the BK

CH 13..the lenders look at 1 year on time payments to the trustee and permission from the court to acquire debt. 

We had a great family that we got financed in Feb and we were under the gun to get hem done before the 13 was dismissed....the reason????

Once the 13 is dismissed they need 3 years to get financed...

Yeah...it makes no sense..

So you are saying that before the 13 is dismissed, the court can allow them to acquire additional debt? But after the 13 is dismissed nobody will finance them for 3 years?  Why this 3 year restriction? It seems somebody would finance them for the right interest rate.



#7 pilot76180

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Posted 09 July 2013 - 09:33 PM

Sorry for the late reply...

Yes, if they are in a CH 13, then they will need permission from the trustee to acquire debt, however, once they are OUT of the 13, they would need 3 years in most cases to finance. 

We have another couple that we are trying to get done before March 2014 because their 13 is discharged then. 


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