There are no mechanisms in bankruptcy that would force a mortgage company to modify the terms of their note. They have a contract, you signed on the line, you agreed to pay, they agreed to give you the money. There’s no mechanism in the bankruptcy code that forces a creditor to do that. However, what we found in this climate, in this economy, that mortgage companies are coming forward and they’re offering clients deals, whether it be a 7 or 13, to modify and to try to keep that debtor in that home.
What Happens If a Seller Backs Out of a Real Estate Contract?
Buying or selling real estate is often one of the most significant financial transactions a person will make. Once a purchase agreement is signed, both parties generally expect the transaction to proceed toward closing. However, disputes sometimes arise when a seller...