Mr. Marc
The man I have been dating for almost 5 years is considering claiming bankruptcy (we currently do not live together although he will likely be moving in temporarily as he has been evicted from his appartment). Currently he and his ex, who are not on friendly terms, own a trailer which is stationed in a trailer park, they both want and need to sell this. I am considering buying it from them using my line of credit. The remaining mortgage is almost $22,000.00. If my friend does claim bankruptcy are there any financial reprecussions for me if I do buy this trailer?
Posted from: Ontario
Before you buy the trailer I think you should ahve it appraised to determine its fair value. In most cases the fair value of a mobile home is significantly less than the outstanding mortgage balance. If this is true then you’d be better off to buy the trailer from the bank AFTER your friend files for bankruptcy. Insteqad of paying the mortgage payout, the bank will accpet the appraised value and you can save yourself some money… The difference between what you pay and the mortgage will simply be wiped out by the bankruptcy…
When your friend goes to see a trustee you might want to tag along and discuss this with the trustee.