Posted by Bud Branstetter on March 23, 1999 at 09:54:07:
I take it the attorney does not litigate. Many good RE attorneys do not and prefer it that way. Find a good one that litigates. As far as bankruptcy-while the court can up to a year I have only heard of them going back about 6 months. Once it has been resold they prefer to pull it back even less. No assuances. If you give a deed, make it a special warranty not a general warranty.
The most important thing would to be to regain possession. Most mortgage /deed of trusts have some provision about collecting rentswhile in default. The IRS has said treat that income as rental even though you don’t have legal title.
The problem with a deed in lieu is that it does not clear judgements against the individual. You can get title insurance. My attorney has said foreclose even if you have the deed in lieu of. If you can regain possession foreclose while doing a rent to own.