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Updated almost 5 years ago,

User Stats

66
Posts
41
Votes
Daniel Purcell
Pro Member
  • Rental Property Investor
  • New Orleans, LA
41
Votes |
66
Posts

Seller is in bankruptcy, but his agent didn't disclose to me!

Daniel Purcell
Pro Member
  • Rental Property Investor
  • New Orleans, LA
Posted

Something I've never dealt with happened today: The seller is going through chapter 11 & 13 bankruptcy (and has been before we went under contract I found out) and his agent just informed me today of this. We were scheduled to close today, but they asked for an extension to 2/12 with a close on 2/14. Come to find out, the seller's bankruptcy lawyer dropped the ball somewhere (we aren't allowed to know where we were told) and we weren't able to close.

Come to find out the sellers agent knew about this the whole time but "forgot" to send us the information upon going under contract. She communicated it to the title company, but not to me. At no point in this process was I made aware of the bankruptcy until yesterday upon the sellers agent telling us we weren't able to close. 

Is there any legal recourse in terms of the money spent on inspections, appraisal, rate extensions, etc.? Or am I at the mercy of the bankruptcy courts? Also, if they seller has no money to put up because of the bankruptcy, what are my options even if I win a case against him?

Thanks as always!

  • Daniel Purcell
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