What If…(Hey, it could happen!!) - Posted by JL
Posted by JL on March 03, 2001 at 13:46:10:
SayI buy a house subject to the existing mortgage and I have my buyer in that house and everything is going just great for over two years.
Then the original owner (who still has the existing mortgage) because I had taken it subject to …decides to file for bankruptcy!!
What position would this put me in??? Would I be required to pay off the note then! What if my credit “Stinks” and I can’t? How would I address this to my buyer? I’d have their down payment upfront cash and they would have been making timely payments, upholding their end of the agreement.
Please!!! How is this handled?
Property would be in a land trust, but the note would still in the original sellers name.
NOTE:…(This is NOT my situation…Just something that was brought up to me by a family member as a concern)