In 2002 or 2003 they filed chapter 7 bankruptcy and where able to keep the house so long as they continued to make payments and kept insurance on the property.

Years ago, I ahd a borrower/buyer in an installment and cash loan transaction who took bankruptcy.

In general, real estate is a great investment, but just like any other investment vehicle it could tank leaving you in bankruptcy if you're not careful.

A serious credit hit and perhaps bankruptcy are in your future.

I do know a lender who uses it, but to my knowledge, has not yet been challenged.I can see it being a mess if the borrower declares bankruptcy,and the BK trustee claws back the property.

Now, as bankruptcies, short sales, or credit restructuring become commonplace, having good credit doesn't seem a priority.

The co-owner filed bankruptcy in 2008 but excluded the house due to our arrangement.

I received this in lieu of cash as part of a bankruptcy settlement.I will start with the assumption that outside of giving this land away, I probably will not have anyone interested in purchasing this property for some time.My holding costs are about $1500-$2000 per year between the property taxes and keeping the grass mowed.So, I am looking for some BP creative ideas to lease the land to at least cover the holding costs.Thanks in advance for any help.Chris

The lenders who are forcing the Chrysler deal into bankruptcy court are not all "predatory hedge funds."

http://dealbook.blogs.nytimes.com/2009/05/14/credit-suisse-dressed-down-over-yellowstone-loan/If Chrysler’s secured creditors think they are getting rough treatment in bankruptcy court, they should consider what just happened to Credit Suisse in Montana.In a ruling that crackles with outrage, the judge overseeing the bankruptcy of the Yellowstone Club, a mountain retreat for the super-rich, took the rare step of lowering the priority of Credit Suisse’s secured debt, putting it behind even the claims of Yellowstone’s unsecured creditors, like vendors.