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Updated almost 9 years ago,

Account Closed
  • Specialist
  • San Antonio, TX
351
Votes |
865
Posts

Insurance and bankruptcy

Account Closed
  • Specialist
  • San Antonio, TX
Posted

I had a property that I sold on a wrap. The buyers went into defalf. We finally had to start foreclosure. The day before foreclosure she filled bankruptcy. In the bankruptcy plan the buyer would begin making payments again. The back payments that where due have yet to be brought current. Buyer made 3 payments, for 3 months Then stopped paying again. My attorney started the process to lift the stay. It was supposed to go down February 19th. The insurance policy is expiring and so I was in the process of getting a tenant policy on it when I get a phone call from my attorney saying the buyer will be sending the 3 payments. We had been escrowing for insurance, but the buyer is so far behind I don't see where there is money on thier end to buy a policy in their name. If I did buy a policy on thier behalf they could cancel it and get the refund even though I was the one that paid for it.

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