Rankandfile the lender will first file a relief from stay but it has to be done at the county court where the bankruptcy is filed. If the seller keeps playing the shell game then the lender can then file for the IM REM. To me, and again I don’t know this to well, the IM REM will effectively disabled the asset protection process that the bankruptcy protection provides. Again, the IM REM will need to be filed in the same county court as the bankruptcy was done at.
I do not know what happens if another shell company is formed but then they claim bankruptcy in yet another county. My impression is that the IM REM will protect the asset and enable the lender to move forward.
sdr – Yeah I had seen these odd title transfers here and there. I would look at the grant deeds and see partial interests for a really low price to wierd named holding companies and never knew what the heck was going on. I even asked my title officer and his answer was sketchy but he referred me to an associate of his and she nailed it in a matter of like 5 minutes. She went to county records in surrounding counties and found the bankruptcy filings of the companies that were granted the partial interests and explained it to me.
