Bankruptcy/ Real Estate
Unfortunately, my husband and I have begun the proceedings to file for bankruptcy on approx. $25000 worth of credit card debt. We are current on all vehicle loans, and both mortgage and line of credit, and had no intention of including our home in the bankruptcy. However, as we understand that the bankruptcy will make it very difficult for us to purchase a new house for a few years, and as we are quickly outgrowing our 3 bedroom 1 bath home, we are reconsidering that decision. We are in Michigan, and therefore have around $40000 negative equity in our house, which is located on a very busy main road. We are trying to emerge from this devastating situation in the best possible position for our family, and with the real estate market like it is in Michigan, rent to own, or land contracts are readily abundant. We are outdoor people, who have dreams of one day owning a small hobby farm where our children can run free. We can’t help wondering if this may be our opportunity to get out of a house that will be difficult to sell in a good market and start over again with more space around us? Any advice would be highly appreciated. Thank you.

our land contract vendor is in bankruptcy
We have purchased a condo on land contract and now the person we bought from is now in bankruptcy. They still have a mortgage against the property as well. The value of the condo has dropped dramatically and we cannot refinance or sell. We don’t know what is going to happen as the person we bought from is not giving any information. This entire situation has been a disaster and we would like nothing more than to get out of this situation and get back to apartment life. We also don’t know if we should be sending the payments to the person we bought from or if we should hold it in escrow. The question is how can we get out of the land contract if possible and what to do with our payments until we figure something out?