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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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a friend is being foreclosed on and has offered to transfer

Resolved Question:

a friend is being foreclosed on and has offered to transfer his intrest in the property to me for one dollar. i wanted to be able to control the property through the forecloser and then redeem the property for myself to live in. i want to do this so i have time to sell my house to fund the redemption of the debt basically using the redemption period as a buy time method and to assure that i have a stright shot at getting the property.
   the problem is he has just wrapped up a chapter 7 banruptcy and has a second note lien in the bankruptcy on the property.{ the house mortgage was not listed in the chapter 7}
   im afraid if i purchase his intrest ih the house for one dollar. that even though the second mortgage is covered in the bankruptcy. that i will have his 2nd to clear up as well as the foreclosure. can i make this work by quit claim? If so how do i best do it?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 7 years ago.

The Chapter 7 bankruptcy would have discharged your friend's personal liability on the second mortgage. However it would not have avoided the lien that the second mortgage holder has on the property. Therefore, you would be purchasing the property subject to both the first and second mortgages.
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Customer: replied 7 years ago.

the house is in notice of default and is set for sherrifs sale the second mortgage will be worthless after that sale if it isn't already. with my friends hlp to contact the lien holder could i purchase the 2nd at a deep discount in light of the foreclosure?if thats practical

would we contact the trustee or the bank of the 2nd? i was hoping to simply purchase a discharge then handle the foreclosure redemption wthout the additional liens.



Expert:  Ellen replied 7 years ago.

Yes you could do that. However you may want to consider either buying at the Sheriff's sale or directly from the purchaser(likely the first lien holder) after the sale.