Shreveport, LA asked in Bankruptcy and Real Estate Law for Louisiana

Q: I am not the seller I am the buyer.

I purchased the property Jan. 2006 and the owner filed Chp. 7 Apr. 2006. I didn't know he had done this until a week ago. I had been to Capital One several times to get info for 1098's and they told me couldn't give to me because my name was no where on the paperwork. I read that in order for a debtor to sell apiece of real estate under a Bond for Deed where a mortgage is present, Louisiana law requires the mortgage holder sign a written guarantee that it will release the property from the mortgage once terms are completed. I do not have this.

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1 Lawyer Answer

Robert Martin Louque Jr

Answered
  • Bankruptcy Lawyer
  • New Orleans, LA
  • Licensed in Louisiana

A: I am not sure what you are asking. I am not aware of any requirement that a mortgage company guarantee release of a mortgage (especially if it's not paid off) on a bond for deed contract. You can certainly agree to assume a mortgage under a bond for deed and it's part of the negotiation between the parties (price paid, etc.)

I am also unsure of the effect of the bankruptcy on your rights under the bond for deed contract because bankruptcy throws a wrench into everything. Did you get notice of the bankruptcy filing? How long ago was the bankruptcy filing? It is possible, under perfect circumstances, your bond for deed contract has been nullified and any damages claim you may have for its violation discharged.

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