I learned something today and thought I would share.....

By
Real Estate Agent with Signature Realty & Associates
http://activerain.com/droplet/JGV

After months of spinning my wheels trying to get a deal done, the seller filed for bankrupcty...what she and her attorney did not know, but my title company did is the following:

 

FL Statue 522(F) states the following:

Judgments that are certified and recorded prior to the bankruptcy "survive the bankruptcy".  Bottom line the creditors, cannot pursue her actively anymore, but the lien remains in place on the home, meaning if she tries to borrow any money in the future, she is still required to pay the outstanding debts.  WOW!!!!I am not an attorney nor are my folks in the title company....but the bottom line is even after the bankruptcy there is not clear title......What are your thoughts?

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Rainer
143,951
Indera Coggins
Re/Max 100 - Dunkirk, MD

Wow! I'd like to learn more on this. I have a listing and my client did not tell me that they receive Foreclosure because we were supposed to settle on the property. However, we don't seem to be able to move to settlement right now and the company changed the door lock.

We have a contract and the company said that they did not order the door lock to change. Any advise?

Aug 10, 2010 11:13 AM #1
Rainmaker
559,664
Ken's Home Team LLC. | 360.609.0226 | Portland, OR & Vancouver, WA Real Estate Team
Ken's Home Team LLC. - Vancouver, WA
- SOLD IS OUR FAVORITE 4 LETTER WORD -

WOW, sounds like it to me... That home is not going anywhere for a while..

Aug 10, 2010 11:17 AM #2
Rainer
25,812
Don Humphrey
Coldwell Banker-homes for sale in Vancouver, WA - Vancouver, WA
Coldwell Banker

That doesn't seam to make sense at first seeing that their bankruptcy was to erase outstanding debts so you would think the lien would have been erased, and most people don't declare bankruptcy unless something had been filed against them -so they wouldn't get protection from that? What's the bankruptcy to protect them against then, only future creditors? 

Aug 10, 2010 11:29 AM #3
Rainer
236,015
Susie Roscoe
Signature Realty Associates - Brandon, FL
Real Estate Specialist | Brandon, FL

Wow...I'm sure the sellers aren't too thrilled about this!  Delcaring bankruptcy and prepared to start fresh only to find out you can't...YIKES!

Aug 11, 2010 01:12 AM #4
Ambassador
2,073,407
Respect Realty LLC
Respect Realty LLC - Milwaukie, OR
Brokers - Oregon / SW Washington Real Estate

Sounds like for that seller she was lucky to have a title company that knew what they were doing! It could have been real bad 3 years down the road to find out this piece of information.

Aug 24, 2010 05:56 AM #5
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