What happens if I owner finance a home and then they file banktrupcy? can they just not pay you then?
You will have to foreclose against them.
Hi,
That is not true (File Foreclosure) !!! In a bankruptcy the court gives the debtor only two choices, discharge the mortgage debt which means you get back title when the bankruptcy discharges (Or when a stay expires giving debtors a chance to pack and move) or the debtor has an opportunity to "Re-Affirm" the debt and come up with all back payments and late charges and any other related cost's the debtor is responsible for.
You do not need to file a foreclosure as there is either debt beyond the discharge or there is reconvience by the court to the lien holder!
GR