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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Some answers... Posted by Ward-CA- on June 10, 2003 at 7:59 PM In Reply to: Deed-in-lieu; Ch. 7 Bankruptcy; What to do? posted by Melissa on June 10, 2003 at 8:05 AM : Last week we found a house FSBO and offered X amount which he agreed to. Said he didn't have any contracts but we could fill out the paperwork Monday. Yesterday, met him at the house and he tells us that he's 1 pmt. behind and filing for Ch. 7 bankruptcy and having some meeting on Thursday. He said that his lawyer advised him to do a deed-in-lieu so that we can buy the house free from liens. The bank we are pre-approved with is the same bank he has his mtg. with. He has a second mortgage on the property. We wanted to write a contract with him but he said his lawyer did not advise it. What action should we take? If we buy the house from him now, will the second mtg. be a lien on the property? We are giving him just enough to completely pay off the 1st. Won't the 2nd just be on his credit if he sells to us now? Thanks! =•=•=•=•=•=•=•=•=•=•= Melissa, A deed-in-lieu foreclosure doesn’t provide for buying a house free from liens!! If you buy the house from him you will inherit all liens that are presently against the property, including the second mortgage you know of. Yes, the second is against his name and his credit, but it will also be a lien against the title to the property. Sounds like this owner is too skittish to deal with at the present time. I’ll bet a lot of the talk about his lawyer is really bunk—a front he's hiding behind. Follow Ups: Re: Some answers... Melissa 8:52 AM, 06/11/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Last week we found a house FSBO and offered X amount which he agreed to. Said he didn't have any contracts but we could fill out the paperwork Monday. Yesterday, met him at the house and he tells us that he's 1 pmt. behind and filing for Ch. 7 bankruptcy and having some meeting on Thursday. He said that his lawyer advised him to do a deed-in-lieu so that we can buy the house free from liens. The bank we are pre-approved with is the same bank he has his mtg. with. He has a second mortgage on the property. We wanted to write a contract with him but he said his lawyer did not advise it. What action should we take? If we buy the house from him now, will the second mtg. be a lien on the property? We are giving him just enough to completely pay off the 1st. Won't the 2nd just be on his credit if he sells to us now? Thanks! : =•=•=•=•=•=•=•=•=•=•= : Melissa, : A deed-in-lieu foreclosure doesn’t provide for buying a house free from liens!! If you buy the house from him you will inherit all liens that are presently against the property, including the second mortgage you know of. : Yes, the second is against his name and his credit, but it will also be a lien against the title to the property. : Sounds like this owner is too skittish to deal with at the present time. I’ll bet a lot of the talk about his lawyer is really bunk—a front he's hiding behind. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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