Good morning! I will try to make this brief as possible. We sold a large ranch in Texas in 2006, we held a wrap around mortgage, part of the ranch was financed with Bank of America. The entire loan was to mature in 3 years and pay us and BOA off. At the end of 3 years, the buyers, a Texas LLC filed Chapter 12 Bankruptcy. We were held up in BK for over a year and then it was dismissed. The purchaser gave us a portion of what was owed on the vacant land part of the tract and we released all but the part that was financed with the BOA. They were supposed to work with BOA to assume the loan and/or try to modify etc and get us off of it. At the time we released the vacant land, they still owed us about $40K plus interest accrueing. We knew we would probably have to sue them for that remainder but needed to wait to see what happened with the remainder of the property that was mortgaged with BOA. The balance at the time was close to $500K due to a year of non payment on the loan while it was in BK. This was all in 2012 that the BK was dismissed. The purchaser made several attemps to work with BOA, which was an impossible task. There was an appraisal made on the house and small acreage in 2009 for $490,000.00 and when the bank started foreclosure then sent us an appraisal for $360,000 which was only a site view appraisal, they did not go into house.
The ultimately sold home and gave us a 1099C for $35K on this property. Our question is, we now want to pursue the people for the $40K plus they owed us plus interest on the first part of this deal when we released the land and is it possible to pursue them for the difference in what was owed the bank and what they sold the property for? We have a valid promissory note for what was owed us and they clearly defaulted.
Our attorney in TX is telling us there is a 4 year statue of limitations on promissory notes and this was executed by the LLC but guaranteed by the individuals. We are not happy because a year of our 4 year time was tied up in Bankruptcy when nothing could happen, so we feel that year should be extended to us on the collection times. Anybody know TX law that can chime in on any hope of us trying to collect a large sum of money due to us? Thank you.
The ultimately sold home and gave us a 1099C for $35K on this property. Our question is, we now want to pursue the people for the $40K plus they owed us plus interest on the first part of this deal when we released the land and is it possible to pursue them for the difference in what was owed the bank and what they sold the property for? We have a valid promissory note for what was owed us and they clearly defaulted.
Our attorney in TX is telling us there is a 4 year statue of limitations on promissory notes and this was executed by the LLC but guaranteed by the individuals. We are not happy because a year of our 4 year time was tied up in Bankruptcy when nothing could happen, so we feel that year should be extended to us on the collection times. Anybody know TX law that can chime in on any hope of us trying to collect a large sum of money due to us? Thank you.
