storybookjim
Member
What is the name of your state? Washington
I posted an issue in the Real Estate forum last week. Got one response that didn't help much. I think this forum might be more appropriate even though it does concern a real estate contract.
The folks that agreed to buy a rental house from me (in 1999) had two prior bankruptcies and convinced me that they really did want a "fresh start". They were very up-front about their poor credit history. So we agreed to a contract whereby they would pay principal and interest. But because of their bad credit and an underlying mortgage with a "due on sale" clause, we agreed that recording the contract would be prohibited. I have been making the payments on the underlying note ever since.
In 2001 they declared a chapter 7 bankruptcy and concealed this contract from the BK court. They didn't tell me about this filing either. On the heels of that, a chapter 13; then another. That's another story in itself and discussion of it can be found in the Consumer Bankruptcy forum under my screen name.
Anyway, I unilaterally cancelled the contract last October for payment default as is my right according to our agreement. Default also means they must surrender the property immediately. They sent one payment a few days after I cancelled the contract and I refunded it. Then they sent me another to replace it. I then informed them and that any money they sent me in the future would be applied to fair market rent, not principal and interest. I informed the bankruptcy court about this cancellation. But I also told both them and the BK court that I would not attempt to evict them because of the automatic stay. They simply resumed making payments (always late) as if the contract was not cancelled. The stay prevents me from seeking any remedy for the default. I suppose I would have to reinstate the contract by court order; but I have no intention of doing so voluntarily. That would be more knuckleheaded than getting into cahoots with these guys in the first place. Akin to checking back into a prison cell after being released.
If I succeed in removing the stay, which I think I may be, what am I looking at: a foreclosure? a breach of contract lawsuit? suit for unlawful detainer? quiet title? All of the above? I really do need an attorney. I know that. And I've consultet with several. Getting conflicting opinions. Thanks in advance to anyone who can recommend a good plan of action to help me through this mess.
I posted an issue in the Real Estate forum last week. Got one response that didn't help much. I think this forum might be more appropriate even though it does concern a real estate contract.
The folks that agreed to buy a rental house from me (in 1999) had two prior bankruptcies and convinced me that they really did want a "fresh start". They were very up-front about their poor credit history. So we agreed to a contract whereby they would pay principal and interest. But because of their bad credit and an underlying mortgage with a "due on sale" clause, we agreed that recording the contract would be prohibited. I have been making the payments on the underlying note ever since.
In 2001 they declared a chapter 7 bankruptcy and concealed this contract from the BK court. They didn't tell me about this filing either. On the heels of that, a chapter 13; then another. That's another story in itself and discussion of it can be found in the Consumer Bankruptcy forum under my screen name.
Anyway, I unilaterally cancelled the contract last October for payment default as is my right according to our agreement. Default also means they must surrender the property immediately. They sent one payment a few days after I cancelled the contract and I refunded it. Then they sent me another to replace it. I then informed them and that any money they sent me in the future would be applied to fair market rent, not principal and interest. I informed the bankruptcy court about this cancellation. But I also told both them and the BK court that I would not attempt to evict them because of the automatic stay. They simply resumed making payments (always late) as if the contract was not cancelled. The stay prevents me from seeking any remedy for the default. I suppose I would have to reinstate the contract by court order; but I have no intention of doing so voluntarily. That would be more knuckleheaded than getting into cahoots with these guys in the first place. Akin to checking back into a prison cell after being released.
If I succeed in removing the stay, which I think I may be, what am I looking at: a foreclosure? a breach of contract lawsuit? suit for unlawful detainer? quiet title? All of the above? I really do need an attorney. I know that. And I've consultet with several. Getting conflicting opinions. Thanks in advance to anyone who can recommend a good plan of action to help me through this mess.