Posted on: 23rd Jun, 2009 11:14 am
If you owner fiance a house and later the buyer files bankruptcy, do you get the house back or does the buyer get it?
Hi
A lot depends on what type of owner financing agreement the seller enters into with the buyer. What would happen in these situations, is usually mentioned in the agreement. It is thus important to involve an attorney to represent you while the agreement is signed. This ensures that your interests are taken care of in the agreement. However, in owner financing, the buyer gets the clear title to the house, once the terms of the agreement are satisfied. If he files bankruptcy and violates the agreement, it is unlikely that he will get the house.
A lot depends on what type of owner financing agreement the seller enters into with the buyer. What would happen in these situations, is usually mentioned in the agreement. It is thus important to involve an attorney to represent you while the agreement is signed. This ensures that your interests are taken care of in the agreement. However, in owner financing, the buyer gets the clear title to the house, once the terms of the agreement are satisfied. If he files bankruptcy and violates the agreement, it is unlikely that he will get the house.