Can I buy His Mortgage for Property at the Bank?

May 4th, 2015 by Questions

My ex- husband applied for Bankruptcy. At which % Value to the dollar can I buy His Mortgage for Property at the Bank? I was told it is $0.25 for $1 Proposal Evaluation; is it true?

Questions

One Response to “Can I buy His Mortgage for Property at the Bank?”


May 04, 2015 at 9:07 am, Doug Stuive, CA | Trustee | CIRP said:

It is not clear from your question whether your ex-husband plans to keep his home and mortgage payments up to date or whether he has surrendered his property to the bank or to the trustee. In a bankruptcy, the trustee will value the home and determine if there is any equity available for the benefit of the unsecured creditors. If there is no equity your ex-husband can decided if he is going to keep the house and continue to pay his mortgage or whether he is going to walk away from the home. If he chooses to walk away and surrender the house to the bank then you can approach the bank and attempt to purchase the home from the bank by paying out the mortgage. This would be a negotiation between you and the bank. There is not a set percentage that the bank will discount for you to pay out the mortgage.

It is a myth that in bankruptcy you automatically lose your home. If there is not benefit to the creditors to dispose of the property you would not be forced to sell.

If you are on title on the property or if this is the matrimonial home you should speak directly with the trustee handling your ex-husband’s bankruptcy to discuss how the house is being treated in the bankruptcy.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)