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!!!
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.
seller is upside down on the property... Go ahead and look for the next deal. You are wasting your time on this one
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....
Quote: The second seems eager to short the first
What does this mean?
keep us updated.