DOES ANYBODY HAVE ANY IDEAS?

Foreclosures, Short Sales, Tax Foreclosures
1

HELLO,

PRE- FORECLOSURE PROPERTY

1ST LIEN PAYOFF: $30,764.09 PAYMENTS BEHIND: $10,792.52

2ND LIEN PAYOFF: $100,639.38 PAYMENTS BEHIND: $20,991.21

1ST MORTGAGE DISMISS FROM BANKRUPTCY

SECOND MORTGAGE IN FORECLOSURE (7/5/06 SALE DATE)

PROPERTY FMV IS $140,000.00

DOES ANYBODY HAVE ANY IDEAS WHAT COULD BE DONE WITH THIS DEAL?

2

I guess no one has any ideas!

3

I have an idea – it’s an alligator.

If you bought it, what would you do with it? What is your exit strategy once you control the property?

The owner has it mortgaged to the hilt…there’s only $8500 between the value (if it is even acurate) and what is owed. The redeeming part is the large second. If the first forecloses, the second loses out so you might be able to leverage that for a large reduction. Some lenders will accept as little as 10% of what is owed on the 2nd. In this case, I would doubt that they’d accept less than 50%…but you never know until you ask!

Keith

4

There is a few thing to take into account.

  1. you said the first is dimissed? are you sure it’s dismissed and not discharged.
  2. has the asset been abandoned by the the trustee
  3. was it a chapter 13 or 7
  4. Keith is right most seconds will take 10% but in this case the second will probably pay off the second to maintain their position.
  5. Why was the second not in the bankruptcy?
  6. if it was a 7 and it is discharged they can’t go for a deficiency on the seller.
  7. The second will not be wiped out if there is a third party buyer.
  8. excess funds will be sent to the second, so in this case the second is in pretty good position here.

just for your info.

5

Hello,

The first was entered into a chapter 13. The homeowner claims that they did not know that the first was entered into chapter 13. What if they filed bankruptcy for the second. Is this an option to give the homeowner more time to sell the property? Chase bankruptcy attorney on the first mortgage, claim that the first is in foreclosure when they gave us the payoff for the first. I did not see this foreclosure on the courthouse record as of yet. I only saw the second mortgage at the courthouse. If we waited until the sheriff sale how should we bid on this property. If we bid on the second mortgage what happens to the first. Can we pay off the first, assume the first position and make a deal for the second before the Sheriff sale? Is there a better way to acquire this property?

6

get the homeowner to contact his bankruptcy trustee and add the second in.

as long as he has not been discharged or dismissed he can add creditors as they come along.

7

I will contact the homeowner. Thank you green queen for the info!

8

Hello,
I talked with the homeowner. The homeowner said that the mortgage was only listed with the bankruptcy and stated that the co-owner was to make payments on the debt. The mortgage was not put under the bankruptcy.

9

Just have a question regarding this discharged/dismissed mortgage. Is it also possible that there is a subordination recorded, and if so, how does that come into play?

10

your client should have his schedule and every creditor is listed… if he has missed any tell them to do an update.

11

Hello green queen,
The bankruptcy attorney told the homeowner that it was too late to add their property to the bankruptcy. Is this correct?

12

only if he is dismissed or discharged i’m sure.

If he is currently in bankruptcy he should be able to add to schedule

13

this is definitely a good short sale opportunity.