What Do I Do As a Creditor
My question involves bankruptcy in the state of: AZ/NE
I sold a home to a buyer using seller financing. Things were going fine until the buyer could no longer make his payments and filed chapter 7 bankruptcy. The home is in AZ but the bankruptcy was filed in Nebraska.
The buyer has already moved out of the home and given me the keys, although it is legally still his.
I spoke with the Bankruptcy trustee and they stated that he is going to "surrender" the home.
I have no interest in trying to collect any delinquent payments, I simply want the deed transfered back to me (and so does he).
The value of this home is almost certainly less than what he owes me.
So my questions are...
-Will I need to foreclose on this property once the bankruptcy is complete?
-Can we file a "deed in Lieu of foreclosure" instead of going through the foreclosure process? From what I have read, that seems like a better option.
-Is there a possibility that I would not get the home back?
-Do you think I need to hire my own attorney to guide me through this process or do you think the home will eventually be turned back over to me without much conflict.
-Any other issues that I should be aware of?
Thanks for any thoughts or suggestions--Andy
Re: What Do I Do As a Creditor
You shouldn't take any legal action outside of the bankruptcy court before the automatic stay is lifted. If the debtor is willing to deed the property back to you, that would resolve the issue without the need for a foreclosure - do you know, at this point, if the debtor will do that?
Re: What Do I Do As a Creditor
Thanks for the response.
Yes, I know that the debtor would be willing to deed the property back to me. Is that a fairly simple process once the stay has been lifted?
Re: What Do I Do As a Creditor
It's the simple execution of a deed. It is normally advisable to have a real estate professional draft the deed. Be sure to check for any liens that may have arisen during the time preceding any deed-back.