Need help on Subto Bankruptcy Deal!

General Real Estate Investing
1

I met with a seller today that has filed Ch. 13, but indicated he left the house out of the bankruptcy. He said he had a second mortgage that was in the bankruptcy, which I believe is just a line of credit that is not secured by the property.

Is it possible to put a 2nd into a bankruptcy and not the second?

I believe I can buy the house subto as long as it is not included in the bankruptcy–is that correct?

Thanks for the help!

2

If there is enough equity in the property you can always buy the second mortgage and catch the payments up on the first and foreclose on the property and never deal with the seller to begin with.