Question from the Other Side?

[mike69]

A year ago I signed a purchase agreement with a bank to buy some forclosed property. This triggered a 65 day first right of redemtion for the debtor/owner.

On the 65th day he files bankruptcy.

He then petitioned the court for permission to borrow the money from 3 private lenders to redeem the property. He was granted permission and reclaimed the property.

I find out today that one of the 3 lenders backed out at the last minnute, the money came from a differnt source that was not approved by the court.

Do I have cause to contact a lawyer about this?

What kind of laywer would handle somthing like this?

[despritfreya]

Was this a Chapter 11 where a Motion for DIP financing was granted?

Regardless, I'm not sure you have standing as you simply were the beneficiary of a foreclosure subject to being divested of the property if the lender was paid by the borrower. That is a risk you, as an investor, take when dealing with purchasing property through a foreclosure process. But, this is just my opinion, which could be totally wrong.

To verify if you have standing you would seek the assistance of an attny who handles creditors in bk. If you are an investor of foreclosed property you probably have some contacts who can direct you to such an attny.

Des

[mike69]

Yes, this was a chapter 11 but has since been converted to 13.

Thank you Des, I was hoping to get your response on this.