What happens if you wrap a subject-to to an end buyer and the original seller files bankruptcy?

Find out Lou’s answer by watching this short video

For more valuable information click on this link and watch the complete episode: https://youtu.be/hsVNrVMjQ0g – “Insider Secrets To Non-Stop Deals”


Discover how to start investing in real estate at Millionaire Jumpstart.

* Money Making Secret #1: Getting Motivated Sellers to Call You! No more calling unmotivated sellers and getting rejected more times than a geek for the high school prom!

I’ll show you how for over 28 years, I’ve been able to get deals brought to me and motivated sellers hunting me down to give me their house.

* Money Making Secret #2: The Art of Structuring Deals! I’ve been doing this for 40 years and I love to share how I get sellers to give me the house, a check, and even a jet ski or two.

* Money Making Secret #3: Negotiating Secrets Revealed! I love to negotiate, just ask Matt, one of my hand-picked coaches. We recently went to an estate sale and he witnessed me structuring a deal to buy the house and contents right there on the spot.

* Money Making Secret #4: Trusts Simplified! A little confused on this entire Trust thing? Why to do it? How to do “Subject-To” safely? I’m going to show you my new fundamentals of Trusts training that will simplify the concept of Trusts, so a 9-year-old child can understand it.

* Money Making Secret #5: Develop a Plan for Success in Real Estate. The wealthiest man ever to walk the earth left clues for us on how he amassed his great wealth and kept it.

How to Help People While Helping Yourself – Become a Certified Affordable Housing Provider™

Create Your 10 Million Dollar Retirement Plan – specific formula revealed

Learn Hidden Profits Available in ANY Deal – worth thousand$

How to Take Over the Seller’s Loan with NO Money

How to Have the Seller PAY YOU to Buy Their Home – no kidding!

Buying Without Bank Loans – over forty years and never one bank loan!!

Easy Ways to LEGALLY Raise Big Money for Your Deals

Renovations – Quick Ways to Safely Make Huge Cash Now

Money-Making Management Secrets from a 40 year veteran who manages over 150 now

Accelerating Your Cash Flow – Add built-in “Profit Centers” – extra hundred$ per month

Case Studies: Secrets of How They Were Found, Negotiated and Sold

How to Protect Your Deal from Someone Else Stealing it

Legally Pay ZERO Taxes on Your Real Estate Portfolio – simple structure worth thousands

Having Tenants Leave Your Property in Better Condition than When You Gave It to Them

Why Land and Personal Property Trusts are the Best Privacy and Asset Protection

Benefits of Trusts You Cannot Get With ANY Other Entity

The Due-on-Sale Clause – What it is and How to Avoid it Legally

And MUCH More

Attend this power-packed “one-of-a-kind” best of the best training on making money in real estate investing!

Call 1-800-578-8580

Listen to our Podcast:


Scott Paton:

What happens if you wrap a sub two to an end buyer and the original seller files bankruptcy?

Lou Brown:

If you’ve been in this business for over 40 years, there’s some things that you’ve learned. And that’s me, I’ve been in this game for a long time. And one of the things I’ve found, and that certainly happened to me early in the game. And it was like deer in the headlights. What do I do? I’m responsible. And I’ve been paying on this mortgage. And now my seller has filed bankruptcy. Is that going to infect or affect me? The answer is Matt, not at all. So, when they filed bankruptcy, as long as we can show that, Hey, we were a third-party arm’s length transaction. We’re not their brother-in-law, we’re not somebody that is involved in helping them to avoid the have their cake and eat it too. Suppose in terms of what somebody might be doing in a bankruptcy.

All the bankruptcy trustee wants to see is that it’s an arm’s length transaction, and that you are continuing to make the payments, because after all that is the bankruptcy trustee’s responsibility is to have the creditors made whole if possible, if not, then to have the creditors, get whatever is left in the liquidation process, their piece of the pie. Well, good news. Yours is not part of that, even though your property would be named in, and that loan particularly, would be named in the bankruptcy. That doesn’t do anything to you because here’s what happens. A bankruptcy divorces the person’s debt from themselves. That doesn’t mean the debt goes away. That means the debt is divorced from the individual that borrowed in the first place. The debt stays with the house. So if you are making the payments on that debt, not a problem, no harm, no foul. The lender is not damaged in any way. In that fact, the lender is enhanced with your involvement in the transaction and making the payments.