[titonpaco]

foreclosure? My husband and I purchased a residence/restaurant 2 years ago, it was owner financed as a deed of trust. Due to failing health, I can no longer work. We have closed the restaurant and are in the process of moving. Here's the problem, the previous owner thinks we have a corporation. We have an LLC and cannot convince him otherwise. We are now 2 months behind in payments. We have offered him the deed in lieu of the payments we owe. He did not accept, even though he knows that we are filing bankruptcy. We have now been served this mountain of papers that includes a motion for appointment of receiver. What is this? Isn't this also for corporations? What should we do at the court hearing? Also, we have not been served with any of the required Oregon notifications prior to commencing foreclosure, such as the opportunity to amend the loan or notice that we are in danger of foreclosure. Any advice? We really just want to give the place back and be finished. Thanks.This is in Oregon, if that helps

[Real Estate CFO]

The prior owner has now escalated the game beyond what a layperson should try to handle. If you are already filing for bankruptcy, you should refer this to your bankruptcy counsel. If you don't have counsel, hire one.In these cases the difference between a corporation and an LLC is not meaningful. Both are legal entities recognized under law that can enter into agreements and be sued. (I'm assuming the LLC was the purchasing entity and is the defaulting party under the deed of trust. Not clear if the LLC, you and husband personally, or both are filing BK.)A motion for the appointment of a receiver means that the owner/lender is asking the court to name someone else to take over managing and operating the property, and that this action is necessary to preserve the value of the property between now and foreclosure. If the entity that owns the property files for bankruptcy, the foreclosure will be stayed (delayed) whle the bankruptcy works its way through, but the judge or bankruptcy trustee may still allow the appointment of the receiver.This should hopefully give you enough background to intelligently talk to counsel. BTW, once you file for bankruptcy federal bankruptcy rules will govern, and will trump state law.