Worst Trustee in the world! My case as a victom!

[Ws2006]

I know ive asked this before but i must Vent because i am sooo pissed that my new year is starting off with this dumb case.

My landlord is in ch. 7 bk and the building is for sale. I have a 6 year lease left with 2x 5 year option

They accepted an offer for 1,000,000 which the trustee must make a leases month to month so that when the buyer buys the building i get kicked out.

The trustee said he will go to court and invalidate my lease because it was a fraudulate transfer which is total BS! I signed my lease 4 years ago and recorded it about 6 months back because a lawyer told me to. Now cuz of that the trustee says its a fruad lease and that he will fight me on this..... (BRING THE FIGHT!)

Now i have found a buyer who is willing to pay 1,050,000 for the building and keep me and my lease as is. We gave this offer to the trustee and the trustee says its not a good enough offer because the guy says he was a loan contingency (which he is already pre approved, and they just need to value the building to fund the money).

The trustee is saying he wants to fight me and give it for less money because the other guy does not have a contingency. (BUT isnt my lease the biggest contingency?) Why wouldnt the trustee take a higher offer with no fight over a lower offer to fight me on breaking my lease?

[etechjc]

I don't know much about this with the trustee, However, I was in a similar situation in a house about 6 years ago in Ozark, Mo. We were renting and had 18 months left of a 2 year signed lease. The owner sold the duplex and the new owner tried to evict us so he could move in his parents to the other side. He started the eviction and when he took us to court, The judge upheld our written lease saying that there was nothing he could do to kick us out unless we actually violated the lease. Infact, I know that in my last lease there was actually language to the fact of sale that new owner was to honer the current lease.

He tried to make it miserable for us by being loud in the other side of the duplex, invading our privacy, even went as far as threatening my blind wife with bodily harm. I filed a restraining order against him, and he had to move out of the other side of the duplex. Then I filed suite against him for Breach of contract and violation of Tenant laws.

The suite never made it to court, He ended up buying us out of the remaining 10 months for $8K and paying 100% of our moving expenses to a new place to keep things out of court.

I wonder if the trustee really has the power to void a written lease, Tenant laws are pretty strong in a lot of states. I would think it would be as simple as you have a lease signed and dated by the owner and it would take absolute proof of fraud, aka, forgery, Held at gunpoint signature, etc... to get the lease voided.

[Ws2006]

That sounds a lot like my case! But this is a bk sale which i know i do have rights.

Thing i dont understand is why they fighting me when there are other offers. Does this trustee just like to ruin peoples lives?

[despritfreya]

WS,

What is happening is the reason you need "big guns" for legal counsel. Remember, it is the Judge who makes the final ruling as to what is the "highest and best" offer. You must file the appropriate responses and your "white night" (they guy with the higher bid) must show up to the sale hearing brining all evidence that he can close quickly on the deal.

Des.

[frogger]

The contingency factor is where your problem is coming in. You have a buyer ready to pay cash for the property vs a buyer that is "pre-approved", however this buyer must still jump thru hoops to finish the transaction.

In todays economy and banking state, the cash offer for less money is probably the best offer. The trustee would best serve the estate by taking the money that can be obtained now. Sort of like that bird in the hand vs the bird in the bush.

[Ws2006]

The guy is going to come to court proving he is approved and just needs the place valued to get the funds.

Also dont forget that the cash offer isnt a cash offer. He is already approved and did the value. No bank will fully give the money without it being is escrow and it isnt. So in one cash the guy is bsing. Also that is the offer only if i am in a month to month lease which the trustee has to fight me on and If he somehow wins, i will appeal and it will take much longer and spend a lot more money.

So is his offer still better that he asks for the trustee to invalidate my lease? vs a guy who wants my lease but wants to be in escrow before he pays all the fees to value the building?


Also Des, my "white knight" lol, is willing to close escrow in 30-45 days if need be

[despritfreya]

The guy is going to come to court proving he is approved and just needs the place valued to get the funds. . .So is his offer still better. . .?

This is why we have judges who, we hope, are impartial. There is strength in numbers and if you and your "white knight" file responses and appear at the 363 sale hearing you could prevail. I do wish you the best. Keep us posted.

Des.

[Charlie777]

Are you in any way a party to the landlord's bankruptcy, or somehow related (business or personally) to the landlord? If not there's no fraud, you recorded the lease to be more certain that you would preserve it.

Your lease, especially now that it's recorded, encumbers the property, just as a mortgage lien would. The Turstee should have to buy you out, which reduces the value of the offer from the other party. As another posted stated, your lease is a big contingency the Trustee can't normally just throw out.

[etechjc]

Funny thing is Bankruptcy law seems to do a good job at keeping anything that isn't directly financially involved out of the bankruptcy. I mean even AP's are separate from the bankruptcy. While I realize trustee can force sell of a place, I find it hard to believe that he can have any real say on a Civil Contract such as a Lease. Seems that it would have to be a completely different case. I mean to think about it, They can't even throw you out of a house that your surrendering.

Just my extremely un-experienced 2 cents.

[BROKEDED]

So what's holding your guy up from getting the place valued? It'd be nice if you could file some kind of suit against the Trustee just to mess his day up and show him you won't be pushed around. Kick his ass seabass!

[Flamingo]

I know ive asked this before but i must Vent because i am sooo pissed that my new year is starting off with this dumb case.

My landlord is in ch. 7 bk and the building is for sale. I have a 6 year lease left with 2x 5 year option

They accepted an offer for 1,000,000 which the trustee must make a leases month to month so that when the buyer buys the building i get kicked out.

The trustee said he will go to court and invalidate my lease because it was a fraudulate transfer which is total BS! I signed my lease 4 years ago and recorded it about 6 months back because a lawyer told me to. Now cuz of that the trustee says its a fruad lease and that he will fight me on this..... (BRING THE FIGHT!)

Now i have found a buyer who is willing to pay 1,050,000 for the building and keep me and my lease as is. We gave this offer to the trustee and the trustee says its not a good enough offer because the guy says he was a loan contingency (which he is already pre approved, and they just need to value the building to fund the money).

The trustee is saying he wants to fight me and give it for less money because the other guy does not have a contingency. (BUT isnt my lease the biggest contingency?) Why wouldnt the trustee take a higher offer with no fight over a lower offer to fight me on breaking my lease?

Part of your issue probably lies in what I highlighted above as to the fraud aspect. You signed your lease 4 years ago but just put it on record six months ago? That raises some red flags as to possible fraud so you may have some explaining to do or get a notarized letter from the attorney who told you to put it on record at that time as to why to put it on record at that time. Looks like you were planning something and that could be part of this issue.

[etechjc]

Im confused about "Putting it on record".Any time I have rented, Both parties sign the lease. The landlord keeps the original and I keep a copy. We don't file it with anyone. How do you put it on record?

[Ws2006]

Part of your issue probably lies in what I highlighted above as to the fraud aspect. You signed your lease 4 years ago but just put it on record six months ago? That raises some red flags as to possible fraud so you may have some explaining to do or get a notarized letter from the attorney who told you to put it on record at that time as to why to put it on record at that time. Looks like you were planning something and that could be part of this issue.

Well what happend is the landlord was in divorce court before bk. They put the building for sale and found a buyer. While it was in escrow the new buyer played games with my lease and the escrow company would NOT put my lease in the paper work and said they wouldnt. I told the landlord this and spoke to his lawyer and the lawyer told me after looking at my lease and history that i also needed to record the lease. So i went and recorded the lease so that they had to put my lease in the paperwork (escrow) But just 2 months after that the landlord file bk because of his Divorce. i have rent payments that ive been paying for 4 years with checks. I have shown this to the trustee.

Anymore info you have?

[tcreegan]

Hi Ws,

I think I found the BK code you need: 11 U.S.C. §365(h)(1) http://www.law.cornell.edu/uscode/us...5----000-.html

Hope this helps!

Tom in Colo

[Ws2006]

Thx for that link. I will foward that to my lawyer right now.

Untill then....... which part should I be reading? This law stuff justt hurts my head cuz it is in a different language lol