Short Sale On 2nd In Bankruptcy?
I have a house I am trying to do a short sale on. My question is, the first is in foreclosure and willing to do a short sale. The second is in their chapter 13 bankruptcy not due to discharge until 4/05. I have not been able to get a hold of the loss mitigator for the second yet, but can they negotiate for a short sale? If not, they'll probably lose all when the first takes the house to auction. Do they need permission when their account is included in a chapter 13 bankruptcy? Do I get permission or do they? I am confused.
My suggestion is go to the holder of the second mortgage. Negotiate with him for an assignment of interest in that instrument. With that buttoned down, continue on with your short sale.
You can at that point always release your interest in any recovery from the BK.
You might like to take an assignment of interest in the second having negotiated the price but subject to your being able to effect some kind of established interest thru short sale. Very simple and lots of fun. Go for it.
Cheers Lucius
I finally got a hold of the second loss mit. She said she would review the package and wanted to know exactly how much the first was shorting. It turned out, that both mortgages are held by the same PARENT company. Then the first called me back and asked who the 2nd loss mit was. Apparently they know each other, and are not friends. The first said the second would only get 1000.00. The very next day the first calls me again and says she spoke to her supervisor last night, and got the okay to handle the whole deal. The second is now out of the pricture for 1000.00. Anyone else have this happen to them? Now, I have to get through the rest of this. Good luck to me.