[Barry Goldberg]

Barry Goldberg

Hi. I’m Barry Goldberg from Bayfield, Colorado, southwest Colorado and Northwest New Mexico is where I live and buy houses. I’ve been buying houses for about 5 years now. Here’s what I need advise on:
I bought a house from a woman that was going into foreclosure on a subject to contract. I did not contact the lender, but we brought the loan current, I gave her some money up front to get out of town,and agreed to pay her more some day when I eventually sold it. She had quite a lot of equity. I have it rented on a lease option for about 6 months now.

Today she called me to say that she is trying to get on disability because of a medical condition, but can’t because of the loan still in her name. So she says she is going to declare bankruptcy to get rid of the loan and get her disability. What are my options? Should I get a new loan to get rid of her, or try to convince the lender, Chase, to let me assume the loan? Any advise is appreciated.

[jimi hendricks]

jimi hendricks

Is it possible for you to wrap the loan and sell to your tenant?

[Barry Goldberg]

Barry Goldberg

The seller wants the loan out of her name,so she can get on disability. I don’t see how wrapping the loan would help? Thanks.

[Anonymous]

Anonymous

HI Barry,

If she declares bankruptcy it will not affect you one bit. You own the house. you have the deed to the property.
She cannot force you to pay off the loan

You’ll probably be contacted by the bankruptcy court and all you have to do it fax them a copy of the contract and the deed – end of story. ( I had this happen one time – so I’m speaking from experience)

Now, she could call the mortgage company and they could start to call the loan due but they have enough problems with defaulting loans now and I doubt that they will call the loan due if the paymetns are current.

You can sell the property with a wrap – but that still will not get the loan out of her name. It will however, get it out of your name or your company name.