Surprise! Surprise! Bankruptcy / Foreclosure? - Posted by JeneanNC

Posted by Sean Cowdrey (CA) on February 01, 2000 at 16:21:26:

First of all, it’s “arrears” not "rears."
Many people keep their homes in bankruptcy due to the personal exemptions available under the applicable state or federal laws. Furthermore, to keep the house, the debtor merely has to re-affirm the debt, and the note and mortgage (or deed of trust) continue on as usual.

With only a $10,000 potential profit on this (which realistically will turn out to be little to no profit), I’d utilize one of the “wiggle out” contingencies that you presumably put in your contract and move on to a better deal.

Surprise! Surprise! Bankruptcy / Foreclosure? - Posted by JeneanNC

Posted by JeneanNC on February 01, 2000 at 16:05:16:

I signed a contract with the sellers of the SFH I previously posted about last night. The FMV is $120K. The loan balance is $81K. The sellers agreed to transfer the deed for $4,000 cash to move on and allow me to continue to make payments of $947/mth.

They just completed a bankruptcy in Nov. 99. Then in Dec. 99 they entered into another one also chapter 13. Becuase the payments were going to be so great, they decided to let their house go into foreclosure.

They thought that they were in the rears for two to three months ($2,922 total Dec., Jan. Feb.). Well I contacted the lender today and they said the rears is $25,000!! plus Attoney fees. The loan was turned over to the foreclosure attoney friday 01/28.

The lender said the rears are from May 98 until now. How can someone complete bankruptcy and still have a rears?

I don’t understand bankruptcy and foreclosure laws. I was told that a person that completed a bankruptcy could not re-enter into another bankruptcy for at least another six months upon completing the first.

We requested the loan payoff and total rears outstanding. The lender said that the rears would be added to the payoff, which would make his house now 106K plus. The sellers still need $4,000 just to move, (total 110K to still make this deal happen).

What should I do now?? Help, newbie in trouble…

Re: Surprise! Surprise! Bankruptcy / Foreclosure? - Posted by Warner(Atl)

Posted by Warner(Atl) on February 02, 2000 at 13:35:21:


Bankruptcy is strange to say the least. First off, a person can file Chapter 13 Bankruptcy as often as they like. They can even file Chapter 13 when they are in the middle of another Chapter 13.

The 180 day delay you are referring to between filing relates to when a person files a Chapter 7 and in some cases when a person abuses the bankruptcy system with repeated filings and the court orders the time span from when they can file again.

Are you sure the bankruptcy was completed or discharged??? It could have very well been dismissed which means that it WAS NOT completed, probably due to the seller not keeping his payments current with the bank. The seller could have even made payments on the arrears but not on the regular mortgage payment, hince the 25K build up.

Since the have file bankruptcy again, they no longer have control over the sale of their home. The bankruptcy trustee must now approve everything. Hopefully, you did not give them the 4K yet. If not do not waste another second on this deal!!!

Re: Surprise! Surprise! Bankruptcy / Foreclosure? - Posted by TCB

Posted by TCB on February 01, 2000 at 20:31:30:

See if the bank will accept a pre-approved sale at less than the 106K, maybe 95K. They may have a value that comes in lower than yours (if you are lucky). Note: The majority of values while a loan is in foreclosure are just BPO’s, not a very dependable source. Then, tell the homeowner he will have to accept less to make the deal work, say, 3K.
MAKE SURE YOU PULL TITLE BEFORE COMING TO TERMS!!! If he was off by that much on how much was owed, he does not keep good records of his finances. If he doesn’t keep good records, there may be outstanding judgments which further limit your profits. Good luck!!!

Does the term “HOT POTATO” mean anything to you? - Posted by steph in tex

Posted by steph in tex on February 01, 2000 at 17:15:44:

drop this deal quick
steph in tex