Hi!

I try to buy a house from a seller who filed chapter 13 bankruptcy
last year here in NY. (Unfortunately I discovered this fact just
recently). His plan is set up for 60 months and he made payments for
less than one year.

Everything is prepared to close except the title company which
requires a letter by the seller's trustee with his written permission
to sell the house. The trustee only agrees to do this if the seller
will pay off 100% of his original debts. The seller only wants to pay
off the amount which is agreed in the plan so he can walk away with
some profit instead of nothing.

Who is right here - the seller or the trustee?

Since the trustee and seller could not find an agreement, the seller
tries to get a court order against the trustee.

How long could something like this take?
Has the seller any chance to be successful?
Could the trustee appeal if the court ruled against him?

I, as the buyer, have big concerns regarding the time line. I have a
rate lock and commitment letter from my bank which is in danger to
expire before everything is resolved.

What is the best to do, from the buyer's perspective?

Thanks a lot for any advice.

Best regards,
Tony

Tony:
Who is right here - the seller or the trustee?

They both are. <g> The seller wants to pay the trustee the
minimum he can. The trustee wants to get the most he can. They
have sumbitted the dispute to the Court, which will decide.
How long could something like this take?

Usually a month or two from the date the motion was filed.
Has the seller any chance to be successful?

Yes, but it depends on the details. The Trustee is arguing
(probably) that the house was worth more than the seller
scheduled it for, and that therefore it is appropriate for him to
pay more of the proceeds to the trustee.
Could the trustee appeal if the court ruled against him?

Yes.

--
Brett

************************************************** ***************
* Personal Injury/Malpractice Bankruptcy *
* *
* BRETT WEISS, P.C. *
* Attorneys at Law *
* Maryland, D.C. and Federal Bars *
* lawyer@erols.com *
* http://www.erols.com/lawyer *
* *
* Small Business Estates & Estate Planning *
************************************************** ***************

The Small Print: This response is for discussion purposes only.
It isn't meant to be legal advice and you shouldn't treat it as
such. If you want legal advice, speak with a local lawyer
familiar with your state's laws who can review *all* of the facts
and the law applicable to your situation.
************************************************** ***************


"chw" <abcw@att.net> wrote in message
news:1e057be5.0308010330.54b1d886@posting.google.c om... Hi! I try to buy a house from a seller who filed chapter 13
bankruptcy last year here in NY. (Unfortunately I discovered this fact
just recently). His plan is set up for 60 months and he made
payments for less than one year. Everything is prepared to close except the title company which requires a letter by the seller's trustee with his written
permission to sell the house. The trustee only agrees to do this if the
seller will pay off 100% of his original debts. The seller only wants
to pay off the amount which is agreed in the plan so he can walk away
with some profit instead of nothing. Who is right here - the seller or the trustee? Since the trustee and seller could not find an agreement, the
seller tries to get a court order against the trustee. How long could something like this take? Has the seller any chance to be successful? Could the trustee appeal if the court ruled against him? I, as the buyer, have big concerns regarding the time line. I
have a rate lock and commitment letter from my bank which is in danger
to expire before everything is resolved. What is the best to do, from the buyer's perspective? Thanks a lot for any advice. Best regards, Tony

>What is the best to do, from the buyer's perspective?

One option is to buy a different house. Which sucks, because you fell in love
with this house. A different house would be... a different house. But this
may be your only option if the selling price is not enough to satisfy the
bankruptcy trustee and/or if the seller opts not to sell.




*****
Tim Horrigan <horrigan@aol.com>
*****

Brett,

thanks a lot for your help:-)

I have to see what I am going to do.

Tony

"Brett Weiss" <lawyer@erols.com> wrote in message news:<jLWcnf0lHqWD7beiXTWJjQ@comcast.com>... Tony: Who is right here - the seller or the trustee? They both are. <g> The seller wants to pay the trustee the minimum he can. The trustee wants to get the most he can. They have sumbitted the dispute to the Court, which will decide. How long could something like this take? Usually a month or two from the date the motion was filed. Has the seller any chance to be successful? Yes, but it depends on the details. The Trustee is arguing (probably) that the house was worth more than the seller scheduled it for, and that therefore it is appropriate for him to pay more of the proceeds to the trustee. Could the trustee appeal if the court ruled against him? Yes. -- Brett

Thanks, Tim for your comment.

I am definitely looking for a (backup) house.

Tony

horrigan@aol.com (Horrigan) wrote in message news:<20030801112912.24275.00000735@mb-m16.aol.com>...What is the best to do, from the buyer's perspective? One option is to buy a different house. Which sucks, because you fell in love with this house. A different house would be... a different house. But this may be your only option if the selling price is not enough to satisfy the bankruptcy trustee and/or if the seller opts not to sell. ***** Tim Horrigan <horrigan@aol.com> *****