I did not know if this was a topic for the legal section, or the pre-foreclosure, so I listed in both. I hope no one gets mad.
I am hoping someone can give me some help with this one.
I am buying a house from a lady that recently had a bankruptcy. There is a lein on the home from Bennificial for a personal line of credit (unsecured debt) in the ammount of $8000. The account was clearly included in her bankruptcy, but Bennificial got a judgement on the property before she filed BK. The title company says I got to pay it unless it is removed. The lady’s lawyer says he can get it off, but wants to charge her $700 to do it. She doesn’t have any money, so that means I have to pay it. I don’t want to have to pay an additional $8000 for the property to make sure I get the closing costs back that I am paying on behalf of the seller. Is there a way I can get it off with out paying the lawyer?
The debt was secured by the judgment lien prior to her filing for BK protection. Secured debt does not go away automatically because of a BK. It attaches to the property. You may be able to get them to settle for less but they will have to be dealt with to get a release. The debt could have been"wiped out" if they had not gotten the judgment.
I am afraid to offer too low when I deal and usually end up leaving money on the table. Just the last deal I did I bid $26K on a defaulted $36K loan and got a yes in hours. It was a first lien on a run down house but I know I could have done it cheaper, but it still works for me. I am pretty sure you can get it for 50% so you may try 20% first, maybe just the $700 you were going to pay the attorney. Keep in mind I am not an attorney so no legal advice. It has to be a win deal for all involved even if someone is losing money at least they get some and sooner. LOL
