selling home land contract then filing chapter 7

[CHARMACK]

What is the name of your state (only U.S. law)? Ohio

We own our home and like many these days it is not selling, we have had offers to do a land contract but we know that we must file chapter 7 in the near future as our debt exceeds income (hence sell of home for less expensive living cost, unfortunately) if we do sell it via land contract what would happen to the home? I wouldn't want to cause problems for buyers.What is the name of your state (only U.S. law)?

[HomeGuru]

Originally Posted by CHARMACK

What is the name of your state (only U.S. law)? Ohio

We own our home and like many these days it is not selling, we have had offers to do a land contract but we know that we must file chapter 7 in the near future as our debt exceeds income (hence sell of home for less expensive living cost, unfortunately) if we do sell it via land contract what would happen to the home? I wouldn't want to cause problems for buyers.What is the name of your state (only U.S. law)?

**A: confusing post. Is there a mortgage involved and are you in payment arrears?

[CHARMACK]

yes, we do owe a $68,000 home equity loan on the house, we are not late on any payments and have a perfect payment history. we need to relocate and the house is not selling but we have had people ask if we would consider a land contract. i kept replying no because i knew we would be filing chapter7 and assumed we couldn't own the property and it not be involved in the case. i just wouldn't want to enter into a contract with someone and then the courts force the house sold. i can tell you we will be selling it for appr. 10,000 more than what we owe as this will pay back taxes, realtor, and relocation costs.

[HomeGuru]

Originally Posted by CHARMACK

yes, we do owe a $68,000 home equity loan on the house, we are not late on any payments and have a perfect payment history. we need to relocate and the house is not selling but we have had people ask if we would consider a land contract. i kept replying no because i knew we would be filing chapter7 and assumed we couldn't own the property and it not be involved in the case. i just wouldn't want to enter into a contract with someone and then the courts force the house sold. i can tell you we will be selling it for appr. 10,000 more than what we owe as this will pay back taxes, realtor, and relocation costs.

**A: it does not matter how much you are willing to accept. The real deal is the true market value of the property and how much a ready, willing and able buyer is going to offer to pay.

[CHARMACK]

o.k. sorry now i'm confused... i just wonder if the house would be involved in chapter 7? but let's say i have a willing buyer at 78,000 with 10% down, )and that price is fair market value we just went with a real estate agent after having tried to sell on our own for one year). i'm afraid we may end up having to just walk away from the house if we don't sell soon. land contract seems to be our best option but i don't want any problems with this contract to arise when we file chapter 7.

[HomeGuru]

Originally Posted by CHARMACK

o.k. sorry now i'm confused... i just wonder if the house would be involved in chapter 7? but let's say i have a willing buyer at 78,000 with 10% down, )and that price is fair market value we just went with a real estate agent after having tried to sell on our own for one year). i'm afraid we may end up having to just walk away from the house if we don't sell soon. land contract seems to be our best option but i don't want any problems with this contract to arise when we file chapter 7.

**A: if the property is sold via land contract, the property would still be included in the BK and the BK Trustee could accept the sale. Of course the lender would need to agree also but in this day and age, the lender would be foolish to not agree.

[CharlotteInvest]

most lenders would want the buyer to assume the mortgage and qualify.

[HomeGuru]

Originally Posted by CharlotteInvest

most lenders would want the buyer to assume the mortgage and qualify.

**A: no, most lenders today want a cash out and their mortgage loan paid off.

[CharlotteInvest]

Originally Posted by HomeGuru

**A: Of course the lender would need to agree also but in this day and age, the lender would be foolish to not agree.

the lender would want the buyer to qualify in this case, we can be technical but i am referring to your answer.

[HomeGuru]

Originally Posted by CharlotteInvest

the lender would want the buyer to qualify in this case, we can be technical but i am referring to your answer.

**A: please read the initial post. The OP did not make any reference to an assumption of mortgage.

[CharlotteInvest]

Originally Posted by HomeGuru

**A: please read the initial post. The OP did not make any reference to an assumption of mortgage.

i was responding to your post.