Please Help With House In BK
Hi,
I have started a short sale on a house with 3 mortgages. The first lied to me about the date of sale but countered my offer I sent. I would pay their price they countered. The Third mortgage company has accepted my offer and has sent me a approval letter. My problem is number 2, They have not done anything yet, The house goes to sale on the 23rd of June and the owner has just filed an emergancy chapter 7 to hang on to the house for 30 more days.
My question is "What are my options here"? now that the house will be in BK.
Can I offer the 1st bank All Cash and Less money? Will they be inclined to take less?
Can I completley forget about Number 2 and 3 and just buy 1?
I really need some help here please.
Thank You
REPrincess
Bankruptcy will put the brakes on the whole transaction... Just curious why he filed a Chapter 7.... which suggests that he has no interest in the home, and will simply walk away without any regard to the outcome. A Chapter 13 suggests a last minute attempt to salvage the home.. or a workable, non-foreclosure alternative. But either way, your wheels just fell off.
_________________
Short Sale Practitioners can't predict, or guarantee results... but can take steps to insure the likelihood for success....
[ Edited by TheShortSalePro on Date 06/22/2004 ]
Hi SSP,
He just called me and told me that his attorney told him I can still deal with the banks as I have been since the house was homestead he can still sell it for what ever the banks agree upon. Is this correct?
Also, Would the banks be more inclined to give me a better deal since it is in BK? What does the BK to to the banks now?
Thank you SSP
You have been most helpful.
My 2 cents.
I don't think the banks will be more anxious to deal because of the bankruptcy because the homeowner filed chapter 7 which means the attorney would be liquidating it anyway. So they will get money either way.
I suggest countering the 1st mortgages counter offer with a price closer to what you originally offered and a faster closing.
Don't ignore 2 and 3, you will be liable for them if you purchase 1. If you can get 1 and 3 down enough to where 2 isn't a problem for you then go for it. Otherwise, keep calling 2 reminding them that there may not be enough proceeds from the foreclosure sale to cover their lien so they better make a deal quick.
Mike(NC)
I can still deal with the banks
The homeowner's lawyer might have suggested that you can continue... but I'll bet that the bank's lawyers wouldn't agree with that.
As I've posted elsewhere, the act of negotiating a preforeclosure short sale payoff is considered collection activity... which is prohibited under federal bankruptcy laws...
But keep trying... it won't be you breaking the law. It'll be the lender.[ Edited by TheShortSalePro on Date 06/22/2004 ]