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  1. #1
    Nipkow is offline Junior Member
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    Landlord being sued, filing for Bankruptcy

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

    My landlord is being sued and he is filing for Bankruptcy. The property I rent from him will not be included in the bankruptcy. I make my rent payments directly to the bank (not the bank suing him). He assures me that the loan I am paying is current. Am I still in danger of losing the house?
  2. #2
    Cvillecpm is offline Senior Member
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    Apples and oranges * if the property is in FORECLOSURE, you have options to pay the bank and stay for the balance of your lease OR 90 days

    if the owner is filing BANKRUPTCY, your lease survives and you may get a notice from the BK trustee as to who to pay....you should get CLEAR as to which event is taking place
  3. #3
    Nipkow is offline Junior Member
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    He is filing personal Bankruptcy to protect his home from the pending lawsuit.
    He says as long as I continue to pay the bank I am safe. He has never said anything about Foreclosure.
  4. #4
    Cvillecpm is offline Senior Member
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    The bank is suing for foreclosure....your lease will survive it or you will have 90 days from the date the bank retakes title
  5. #5
    Nipkow is offline Junior Member
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    Will I have the opportunity to buy the house from the bank without moving out? My 2 year lease is up at the end of the month. The contract says I have the option to buy at the end of the lease or continue to rent month to month. My credit is not good enough to buy right now. Can I sign a new lease before he officially files for Bankruptcy?
  6. #6
    Cvillecpm is offline Senior Member
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    The bankruptcy is not the issue - it is the foreclosure.
  7. #7
    Nipkow is offline Junior Member
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    How can they forclose if the payments are up to date?
  8. #8
    ecmst12 is offline Senior Member
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    There is no foreclosure and you can ignore Cville. If the mortgage on the house you are living in is up to date (and you know it is because you're paying it), and the property isn't being included in the BK, then you should not be affected by his BK at all. HOWEVER, if you gave him a security deposit, you can bet he spent it and you won't ever see it again.
  9. #9
    Nipkow is offline Junior Member
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    There was no security deposit. I just hope he's telling me the truth. I dont know for a fact yet that he wasnt behind on paying the bank before I took over making the payments directly.
  10. #10
    Nipkow is offline Junior Member
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    Would signing another lease give me any more protection?
  11. #11
    Cvillecpm is offline Senior Member
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    I suspect OP is making rent payments INTO the owner's bank account rather than to the actual mortgage company.

    If owner is selling the property on an installment/land contract, those payments will be wiped out in the BK by the trustee and the property in the owner's name/title will be used used to pay creditors of the owners.

    If the property is in the owner's name and owner declares BK, the trustee rules the ownership/equity in the property NOT the owner.
  12. #12
    ecmst12 is offline Senior Member
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    I think if that's what OP was doing, that's what he would have SAID.

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