Using The "B" Word
I'm working on a short sale with an owner how called me yesterday to say he's planning on filing bankruptcy...but not on the house I've got under contract and working on the SS. He has two other houses that he wants to file B on. I talked to the local bank about these two houses two weeks ago and they will take their chances on selling them after foreclosure.
My question is, should I go to the local bank again and talk to them about the owners plans to file B on these props? I would think the bank would be willing to work with me if they knew about the owners intentions. BTW, can he file B on these two houses and not the one I've got in a SS presently? Sorry about all the questions...just wondering if anyone else has had this type of situation and if using the "B" word helped short the price and seal the deal?
Numbers on these two houses are:
HOuse 1: $77k princ. with $3500 due in interest.
House 2: $129k princ. with $6200 due in interest. FMV about $140k.
Both props are about 90 % complete. House 2 needs about 10k to finish.
Haven't seen house 1 yet.
Doesn't seem like much room unless bank discounts props. If not, owner is filing B.
Thanks for the help on this board!
Todd
Failing Forward![ Edited by somoose on Date 03/17/2004 ]
I might be wrong, but I was always under impression that the individual filing for BK has to disclose ALL of the assets, including the other house. From my understanding, you he can't juck pick and choose which accounts will go to BK. If he doesn't disclose all of the assets and gets caught, then creditors can potentially go after him.
Vasiliy you are absoultely correct.
The debtor may have varying "intentions" with respect to these two homes...
but he will be disclosing all his assets and liabilities if his bk lawyer is worth a damn.