Contract for Deed

[warden50]

My question involves bankruptcy in the state of Missouri: I am buying my home with a Contract for Deed. How will my property be treated in a Ch 7 bankruptcy? Can I be made to sell my home to satisfy my debts? Is treatment of a Contract for Deed the same as a standard mortgage?

[OhMy]

My question involves bankruptcy in the state of Missouri: I am buying my home with a Contract for Deed. How will my property be treated in a Ch 7 bankruptcy? Can I be made to sell my home to satisfy my debts? Is treatment of a Contract for Deed the same as a standard mortgage?

Are you buying a foreclosure from the VA or something similar? they issue contracts for deeds. When you pay off the VA at the end of the mortgage they then record the deed to you.

Since in a BK 7 you are only allowed to keep so much, you will have to disclose the equity in your home. You really need to speak to a BK attorney. This site can put you intouch with one in your area.

[warden50]

I am purchasing this home rom a private seller who is carrying the mortgage. The contract has never been registered and I have been paying on it for the past seven years. Thanks

[OhMy]

I am purchasing this home rom a private seller who is carrying the mortgage. The contract has never been registered and I have been paying on it for the past seven years. Thanks

You would need to report this on your bankruptcy petition. Do not hide this or it will come back to haunt you. Ask your BK lawyer about it.

In many cases your primary home is protected in a BK. If you keep up with your payments you should be ok, but ask your attorney as he has all of your financial information.