I’m renting a home that is in bankruptcy

[Halette Saucier]

Jurisdiction

Louisiana

I am currently living in a home. Paying $1050 rent monthly. I have found out the person I'm renting from has not paid on her Chapter 13 payments for 6 months now. My husband and I are supposed to be buying this home from the landlord after 2 years of renting which will be April 2020. We have done about $50k in remodels and repairs bc we thought we were going to be purchasing this home. Now we find out she's not been paying and don't know where this will leave us. I've reached out to my landlord and received no response. I have copies of the paperwork that was served. I can upload if needed.

 

[mightymoose]

Now we find out she's not been paying and don't know where this will leave us.

What agreements do you have documented in contracts? Your contracts should tell you where you stand.

 

[Halette Saucier]

We have a lease agreement. It states we are leasing for 3 years, and have option to buy at the 2 year mark, which is April 2020. We are prepared to purchase this home. But are afraid if she has not been making payments or has defaulted on the bankruptcy, the home could be repossessed or foreclosed on. Then we are out of a home.

 

[mightymoose]

You might consider making your offer to buy sooner rather than later or you may not have the option at the two year mark. As of now it seems you are simply tenants.

 

[Halette Saucier]

We have made multiple offers to buy the house now. At first, she simply said no, and now she doesn't even respond.

 

[adjusterjack]

We have a lease agreement. It states we are leasing for 3 years, and have option to buy at the 2 year mark,

An option to buy is no guarantee that you will buy.

We have done about $50k in remodels and repairs bc we thought we were going to be purchasing this home.

Well, now you know how foolish it was to give somebody a gift of $50,000 in remodels to a home you do not own.

We are prepared to purchase this home.

How? Do you have cash? Do you have a mortgage approved and ready to fund?

If you answer yes to either question, you are likely to have to get permission of the bankruptcy court to purchase the house.

If your answer is no to both questions then, no, you are not prepared to buy the house.

One thing you can do is start an account on PACER so you can check the status of the landlord's bankruptcy.

Public Access to Court Electronic Records

If the bankruptcy has been dismissed because of the default, you may have better luck buying the house now before it goes into foreclosure.

If it hasn't been dismissed, find yourself a bankruptcy lawyer to handle getting consent to purchase.

 

[adjusterjack]

We have made multiple offers to buy the house now. At first, she simply said no, and now she doesn't even respond.

I don't know what to tell you. If it goes to foreclosure you'll have an opportunity to buy it from the bank at auction along with everybody else who bids on the house. At auction they expect cash in full within 24 hours and you'll need proof of funds before you are allowed to bid.

 

[army judge]

We have made multiple offers to buy the house now. At first, she simply said no, and now she doesn't even respond.

The new owner, which is very often the lender, will be your new landlord.

If you wish to purchase the home, contact the lender's attorney and see if the lender is amenable to selling to you.

Regardless of that outcome, the lender or the new buyer is bound to honor your existing lease.

 

[zddoodah]

You don't seem to have asked a question, but your post raises a host of issues. Among other things, what are the dates of the following:

The date of your lease (I assume April 2018)?
The date on which your landlord filed bankruptcy?
The date on which the landlord's Ch. 13 plan was approved?
The dates when you made the $50k in remodels and repairs?

Also, you wrote that you were served with some sort of paperwork. What was that paperwork?