My question involves bankruptcy in the state of: Texas.
My landlord just called me to let me know that he is filing ch 7 bankruptcy next week. He advised me to not make any further payments to him for rent on the house until either the trustee or the lender on the mortgage contacts us. He advised at that time we will likely be given a few options, either leasing the house from the lender, purchase option, or given time/assistance to move out. He said he figured it could take as little as 3 months or up to 8 or 9 months depending on the court docket and various other issues before we would be looking at having to make a decision one way or another.
While the prospect of being able to stay in the house rent free for even a month would be fantastic, I don't want to be told in a few months that we owe thousands of dollars in rent or we'll be evicted. We do plan to just put the rent money into the savings account for the time being, but if something should come up and we need the money for something major (we've already had to replace the AC in the house, the dishwasher, and do some other repair work on the house) we don't want to be left in a lurch. We do not have a standard lease, and all repairs/maintenance on the house is our responsibility.
We have 4 kids and my husband is preparing to deploy overseas. I don't want to suddenly find myself trying to move with no notice while he's halfway around the world. Money is tight but we aren't hurting, though our savings was depleted with the premature birth of our newest child a few months ago, we are just at a point to start socking money back into the savings account again and the rent will be going there as much as possible, though we might pay off the remaining medical bills.
Can anyone lend some thoughts on what we can expect to have happen? We would be interested in purchasing the house, but since we are debt free and have no credit cards or other loans/debts, we know that financing might be a little tough to come by without a steep interest rate, though the prospect of being able to purchase the house at a significant discount would be a real strong selling point. We already had a locked purchase price option in our lease that was an excellent price for a 4 bedroom house, so to get it at even less than that would be awesome and we could afford to do some renovations and work that it needs without going further into debt.
We are technically considered on a month-to-month lease right now I guess, as our lease did expire back in February. We've been there for several years so we just haven't gotten around to redoing the lease.

