bankruptcy question

[AzJames73]

Kali (43,805 posts)              https://www.democraticunderground.com/10029700906

bankruptcy question
guy buys a property, pays half up front then doesn't make the balloon payment for balance when due, strings original owner along for 6 months, then cons owner with some small amount into giving him another 30 days. on day 29 he files for bankruptcy.

what happens next? (assume this is his main debt)

Soooooo how much money were you conned out of ?

[SVPete]

She needs to point out the guy's bad faith dealing in bankruptcy court. Assuming she wasn't the one dealing in bad faith.

[franksolich]

Uh, one thing to keep in mind, even though it might, or might not, be relevant in the Kali primitive's case.

Sometimes the primitives will tell a tale of something that happened to someone else, because it's embarrassing to admit it.....when in fact it happened to the primitive.

By the way, this Kali primitive who lives in the rustic sands of southern Arizona, is not to be confused with the better-known bitter old Vermontese cali primitive.

[Ralph Wiggum]

Don't believe this "story" a bit.  First of all, in most cases in order to obtain such a loan with a balloon payment requires a net worth to begin with.  The profitability (in commercial real estate especially), should ensure cash flows to either pay the balloon due or roll into a new loan.

Frank, DUmmies lie, all the time, as you often say.  USA4ME might have a similar or perhaps more specific insight.

[Old n Grumpy]

what happens next?

The owner calls Vito, and for a small fee he calls Louie "the Bat" and Louie pays the deadbeat a visit. After convincing the deadbeat to pay up he breaks a couple of bones to make sure the deadbeat understands.

It is really quits simple.

[USA4ME]

Filing bankruptcy doesn't make the debt you owe for a piece of real property go away. The person to whom you owe payments on the property can still foreclose and you lose everything you've paid to them. The facts are you defaulted on the terms of the purchase, and bankruptcy doesn't change that.

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[Ralph Wiggum]

Filing bankruptcy doesn't make the debt you owe for a piece of real property go away. The person to whom you owe payments on the property can still foreclose and you lose everything you've paid to them. The facts are you defaulted on the terms of the purchase, and bankruptcy doesn't change that.

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Thanks for your response. Know enough about some of the biz, but more your realm of expertise.

[DumbAss Tanker]

There's a lot of unspecified detail, but that token payment may actually get clawed back by the Trustee, since it seems to have been in bad faith (But not quite in the same way clawbacks usually happen).  The seller was a dope for not initiating foreclosure when the buyer went far enough in arrears to permit it, generally after two months of missed payments, and then screwed up again by taking a less-than-full payment, which he wasn't obligated to do and confuses the foreclosure timeline.

He could always forbear on the actual seizure, but you can't get there without going through foreclosure, then notice and failure to cure, as per the terms of whatever State law applies.

DUmmie should have gotten at least a freebie consult with an attorney to decide what to do when the second payment in a row failed to materialize. 

[USA4ME]

There's a lot of unspecified detail, but that token payment may actually get clawed back by the Trustee, since it seems to have been in bad faith (But not quite in the same way clawbacks usually happen).

Depends on the State Law, but I agree.

Also agree taking the payment money after the Note had ballooned complicated the matter and they should have just begun foreclosure procedures. Sometimes people with good hearts trying to help someone end up screwing themselves over. It's sad the world has become that way.

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[Tess Anderson]

Uh, one thing to keep in mind, even though it might, or might not, be relevant in the Kali primitive's case.

Sometimes the primitives will tell a tale of something that happened to someone else, because it's embarrassing to admit it.....when in fact it happened to the primitive.

By the way, this Kali primitive who lives in the rustic sands of southern Arizona, is not to be confused with the better-known bitter old Vermontese cali primitive.

Yeah, this one's real name is actualy Kali, and I'm not 100% sure, but I think part of the ranch has been for sale, this may be what she is dealing with here. It's been relisted recently, and the amount is under 100k but then she explicitly says it's a neighbor at the DUmp. Records should be easy to find.

Have a picture that could be Kali, but it may be one her two sisters. Anyways, her father was a professor of anthropology:

http://azdailysun.com/news/local/obituaries/christy-g-turner-ii/article_1d320cf6-fbcd-11e2-896a-0019bb2963f4.html

stepmom was a Russian, Kali and her family still live on the ranch.

[SVPete]

That appears to be an obit of her Dad and the picture is him. I didn't see any pics of a family member when I went to the page.

[Tess Anderson]

the picture wouldn't be on the father's obituary page, sheesh. Just like a full-blown colonel couldn't ever be buried in Arlington.