Is There Enough Time To Help This Person?!
I'm in Los Angeles, California.
I have a deal that I'm working on right now.
The house is going to be sold at the court house on the 13th of April.
This guy just bought his house exactly a year ago.
FMV 500-525K
1st: 500K (foreclosing)
2nd: 150K
He's late on his taxes and payments by about 30K.
Questions:
1. Is there enough time to do a short sale?
2. Can I still discount the 2nd mortgage ( 1st and 2nd were recorded on the same day)
3. If he files a chapter 13 is it going to help me ( give me more time ) to do a short sale?
4. Last question : What would you do to help this guy?
I am so interested to see what is going to happen here. If I were you I would go to the short-sale forum and read everything there that is to be read. You may also want to post this topic to the that forum.
I also just found this information on another forum. Hope this helps.
Quote:
On 2004-03-31 02:25, DFresh wrote:
There is only one sure fire way to stop the foreclosure for and that is to help the homeowner file an emergency petition for Chapter 13 bankruptcy. The emergency petition is much smaller than the entire Chapter 13 Bankruptcy package. If you go to your local Federal Courthouse you can pick up the necessary papers. As long as you file the proper paperwork with the intake cleark at the Federal Courthouse and get a case number and time stamp , the sale will be stopped. You can literally file the BK paperwork five minutes before the sale, and even if the sale takes place it will be invalidated if you have the bankruptcy case number with a time stamp prior to the sale.
Once you have stopped the sale you have approximately 2 weeks to file the remaining bankruptcy paperwork. This will not be necessary because in this time you will have given yourself enough time to put your deal together. One thing to remember is you cannot buy a property that is under Bankruptcy protection without the court trustee giving you approval. That is way I have the owner file a voluntary dismissal of their case about three days after the intial filing. The judge then okays the dismissal and once the case is officially closed you can open escrow and close the deal without the court interfering.
-Doug
Thank you Curtbixel. I have red that topic before. My only concern is that after he files Chapter 13 how much time do I have to do a SS before the next auction day?
go buy the first short. At this point they may take a substantial discount, especially if the mortgagee starts talking bankruptcy and hires a bulldog attny (at your instigation of course) Let the sale go forward and the 2nd goes away.
Quote:
On 2004-04-05 10:00, commercialking wrote:
go buy the first short. At this point they may take a substantial discount, especially if the mortgagee starts talking bankruptcy and hires a bulldog attny (at your instigation of course) Let the sale go forward and the 2nd goes away.
commercialking,
This is my first deal and I don't have any exp. on how to buy liens neither how to create an offer to the bank to sell me the first with a discount.
Any good books that you could recommend for me to read to help educate myself for those kind of transactions?
Thanks,
Alexander