Legal Question in Bankruptcy in Minnesota

I signed a purchase agreement with a bank for some forclosed property. The debtor of the property filed chapter 11 and petitioned the court for permission to borrow money from 3 lenders to redeem the property and was granted.

I later found out one of the court approved lenders backed out at the last minnute and the debtor got the money from an unapproved source.

what is my standing?

Asked on 4/12/13, 2:40 pm

1 Answer from Attorneys

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If you put anything down on the property, you may be able to recover that. Otherwise, your options are pretty minimal considering your losses may be minimal. Generally speaking, a buyer of real property assumes it with all encumbrances/liens/issues aside. If the property was in foreclosure and still in the redemption period, you risk the owner coming back to redeem if you sign a purchase agreement.

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4/12/13, 2:51 pm

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