Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
Since you filed for bankruptcy, your personal obligation to pay either loan is discharged, which means that the 2nd lienholder has no way of collecting from you -- it can't even sell the loan to a debt collector. Which means that it would be nuts to refuse your offer, because it's free money.
Unfortunately, the only thing that you could have done to force the 2nd lienholder out would have been to file Chapter 13 and then sue the lender to strip the lien. This is now impossible, and it would have cost you more than $5,000 to do so.
BotXXXXX XXXXXne is that you're wasting your time with a short sale, unless a buyer wants to take the property "subject to" the 2nd lien. Which isn't going to happen.
Not really sure why it matters to you at this point. If it were me, I wouldn't want prospective buyers walking through my home, unless there was money in it for me. So, unless you have some side deal going with the real estate agent (DON'T TELL ME, EITHER, because that's federal felony bank fraud). then you may as well just let the property foreclose.
Hope this helps.
NOTICE: If you are on a subscription plan, your clicking Accept does not generate any additional charges to your user account. It only indicates your satisfaction with my answer.
Terms and Conditions: By your continuing in this conversation with me, or by your clicking “Accept”, you are expressly agreeing to all of the following: (1) our communication is for entertainment purposes only; (2) you are not consulting me in my professional capacity as an attorney; (3) you do not seek to establish an attorney-client relationship with me, nor do I with you; (4) you will not rely on anything I say and you will obtain appropriate legal counsel via a traditional/office consultation with an attorney licensed to practice in the jurisdiction where your legal issue arises (and you may not use our communication to avoid taxpayer penalties imposed by the U.S. Dept. of Treasury); (5) by communicating with me in this public forum you are irrevocably waiving any right to privacy, confidentiality and attorney-client privilege concerning the matters discussed. You further separately declare that any payment made by you is not consideration for this contract, nor offered for any services rendered by me on your behalf, but rather is made in genuine admiration and respect for my desire to help others. If you do not agree with these terms and conditions, then you must advise me immediately.
Well, your disclosure to the 1st lienholder avoids criminal liability. But, it doesn't really change the outcome, which is that there is no legal means to force the 2nd lienholder to cooperate. All you can do is try to negotiate -- by raising your offer. Though, pretty soon, it may not be worth the effort.
Best of luck.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).