Need Fast Help...Does Anyone Know How This Works...

I have a seller who wants nothing to do with his property anymore and is willing to deed it over to us, but I am unsure about the following situation:



Prop worth 380 - 400,000

1st mtg - 274,000

2nd- 133,000

Seller filed bankruptcy and all his debts have been disolved except the second. The second filed foreclosure on it and Trustee sale scheduled for end of this month......He already agreed to sign over all rights to property, and wants to not hear about it ever again.



What happens to the 1st if we get it and wholesale it....do we need to worry about it since it was covered under the BK?



Anyone know bankruptcy law in California?



Thank you in advance!!!

Comments(5)

  • charlotteinvestor21st April, 2006

    If you plan on wholesaling the property, the first will have to be paid off, but from my understanding the bankruptcy, will have to be involved in order for the property to be deeded to someone else.

    Call the bankruptcy attorney to find out the gist.

  • InActive_Account22nd April, 2006

    seller is upside down on the property... Go ahead and look for the next deal. You are wasting your time on this one

  • paezinvesting25th April, 2006

    Thank you all for the help.

    We got the property and am in the process of short selling with the bank. The second seems eager to short the first because the first has to get paid. I found out that in a bankruptcy the owner does not a=have a financial obligation to the dismissed liens, but if it is sold the proceeds need to pay off the outstanding loans.

    Looks like it is going to work out after all....

  • bgrossnickle25th April, 2006

    Quote: The second seems eager to short the first

    What does this mean?

  • InActive_Account29th April, 2006

    keep us updated.

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