Question re: pre-foreclosure/bankruptcy...
We offered to buy a house from a guy 3 days ago. We were going to write a contract for what he wanted. Today he says he's going to file Ch. 7 bankruptcy this week; but he talked to his lawyers and thinks he can still sell us the house, after he files this Thurs. We were going to give him about 4K more than what he owes on his 1st mortgage. He says he has a second that he will file b. on and that the 2nd will be wiped clean...is this true? How long will this process take? Also, we were going to get the mtg. from the same place he's got his 1st with. He has only missed one payment. Advice/comments? Thanks!! 
[ Edited by Melissa36 on Date 06/09/2003 ]
I recently had to find out info, on a similar topic... I found useful info at http://www.abiworld.org/consumer/proto/bankruptfaq.html
hope that helps!
That's not true. A second mortgage isn't wiped clean (is that what you wrote?) in bankruptcy.
A mortgage is secured by the property. If a mortgagor (borrower) files Chapter 7 bankruptcy the mortgage isn't extinguished, but the borrower's personal liability to repay the mortgage loan may be. The lien against the property remains.