Posted on: 16th Oct, 2010 12:16 am
While in personal BK 11, I/my company changed the residential use of my development of 5 homes to assisted living and care homes without the lenders knowledge. I currently have one care home operating and intend to open more next to eachother with special use permits. If the bank decides to foreclose, can the bank change the cc&r back to residential without my permission. I own all of the properties personally and the CC&R's are recorded in the business name.?
#2 Also can the bank sue my company?
#3 If the bank did foreclose, would the new recorded CC&R still be valid effecting the use to assisted living?
#4 Is the bank screwed?
#5 Will the bank offer me the home back a a reduced rate?
#6 does this effect my personal BK Cahpter 11
#2 Also can the bank sue my company?
#3 If the bank did foreclose, would the new recorded CC&R still be valid effecting the use to assisted living?
#4 Is the bank screwed?
#5 Will the bank offer me the home back a a reduced rate?
#6 does this effect my personal BK Cahpter 11
Welcome structuralaz,
The bank has the rights to foreclose the property in order to recover the dues. Moreover any transfer of property just before the bankruptcy filing might be considered as fraudulent. In my opinion, you should contact a bankruptcy attorney and take his opinion in this matter.
The bank has the rights to foreclose the property in order to recover the dues. Moreover any transfer of property just before the bankruptcy filing might be considered as fraudulent. In my opinion, you should contact a bankruptcy attorney and take his opinion in this matter.
AS STATED & MORE INFORMATION: I am in personal BK. The company changed the use of the property. In the BK nothing has been foreclosed. As the owners of the properties, in the BK plan is to open all the homes as assisted living. The CC&R included additional properties to it and recording it after the BK has been file, not before. No transfer of property.
The attorney commented that the corporation actions does not effect the bankruptcy of the debtor.
The attorney commented that the corporation actions does not effect the bankruptcy of the debtor.