Re: ReFi in Bankruptcy - Posted by John
Posted by John on July 17, 2005 at 09:29:36:
I am sorry but I really can’t help here. I am also not familar with Indiana BK laws. It would depend on the contract and how it was written. If it was a lease with option, seperate transactions, they are not on title or have equitable title, a refi is not possible, it would be a purchase. A purchase is not possible until BK is discharged. If they have equitable interest in the property as in contract for deed, or been given rent credits, they would have some ownership rights. A refi might be possible. From your description it would seem they do not.
It would seem like walking is the only option they have, unless they have a large equity position between FMV and option price. If they do a HML or investor may buy their option.
Just curious what other debt made them file BK?
Sorry I can’t help more