Comments on: Purchaser of foreclosure property responsible for 2nd mortgage forgiven in bankruptcy? http://numberonehomeloans.com/2nd-mortgages/purchaser-of-foreclosure-property-responsible-for-2nd-mortgage-forgiven-in-bankruptcy Mortgages, Refinancing, 1sts, 2nds, 3rd Mortgages Thu, 09 Sep 2010 14:04:01 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Dark Green Money http://numberonehomeloans.com/2nd-mortgages/purchaser-of-foreclosure-property-responsible-for-2nd-mortgage-forgiven-in-bankruptcy/comment-page-1#comment-2206 Dark Green Money Fri, 05 Mar 2010 07:11:59 +0000 http://numberonehomeloans.com/2nd-mortgages/purchaser-of-foreclosure-property-responsible-for-2nd-mortgage-forgiven-in-bankruptcy#comment-2206 If the home actually goes through foreclosure, all junior liens are removed. But if you're buying on the courthouse steps, tread lightly, senior liens will remain. It might be the HELOC foreclosing, you'd be stuck with a home with a 1st and a tax lien still stuck to it. The bankruptcy only had to do with an individual and their personal liability for these debts. To the buyer of a foreclosure, that is irrelevant. Bought REO, you could get title insurance and be assured clean title.<br><b>References : </b><br>http://www.bkworker.blogspot.com/ If the home actually goes through foreclosure, all junior liens are removed.
But if you’re buying on the courthouse steps, tread lightly, senior liens will remain. It might be the HELOC foreclosing, you’d be stuck with a home with a 1st and a tax lien still stuck to it.

The bankruptcy only had to do with an individual and their personal liability for these debts. To the buyer of a foreclosure, that is irrelevant.

Bought REO, you could get title insurance and be assured clean title.
References :
http://www.bkworker.blogspot.com/

]]> By: foreclosurefish_com http://numberonehomeloans.com/2nd-mortgages/purchaser-of-foreclosure-property-responsible-for-2nd-mortgage-forgiven-in-bankruptcy/comment-page-1#comment-2205 foreclosurefish_com Fri, 05 Mar 2010 06:55:59 +0000 http://numberonehomeloans.com/2nd-mortgages/purchaser-of-foreclosure-property-responsible-for-2nd-mortgage-forgiven-in-bankruptcy#comment-2205 When the title is transferred on a property, all liens or debt against the property will need to be settled, otherwise the transfer will not go through. This is the main reason for title searches/insurance, which will help eliminate these types of problems at closing. A title search should reveal all possible liens against the property. The insurance will cover they buyer if there is something the title search missed. If there is still a second mortgage, then the bankruptcy discharge papers will be needed to clear the lien. In most cases like this, a chapter 7 bankruptcy is used to eliminate all the debt except the mortgage, so the buyers probably don't have to worry about it. But there will probably be some extra paperwork involved to make sure the bankruptcy is discharged and the debt is eliminated.<br><b>References : </b><br> When the title is transferred on a property, all liens or debt against the property will need to be settled, otherwise the transfer will not go through. This is the main reason for title searches/insurance, which will help eliminate these types of problems at closing.

A title search should reveal all possible liens against the property. The insurance will cover they buyer if there is something the title search missed. If there is still a second mortgage, then the bankruptcy discharge papers will be needed to clear the lien.

In most cases like this, a chapter 7 bankruptcy is used to eliminate all the debt except the mortgage, so the buyers probably don’t have to worry about it. But there will probably be some extra paperwork involved to make sure the bankruptcy is discharged and the debt is eliminated.
References :

]]> By: FarmGirl13 http://numberonehomeloans.com/2nd-mortgages/purchaser-of-foreclosure-property-responsible-for-2nd-mortgage-forgiven-in-bankruptcy/comment-page-1#comment-2204 FarmGirl13 Fri, 05 Mar 2010 06:08:59 +0000 http://numberonehomeloans.com/2nd-mortgages/purchaser-of-foreclosure-property-responsible-for-2nd-mortgage-forgiven-in-bankruptcy#comment-2204 who ever buys the property isn't buying the debt. they just buy the property. the debt has to be dealt with prior to the sale. bankruptcy can sometimes wipe out a line of credit or second mortgage look at the bankruptcy discharge paperwork to be sure. good luck<br><b>References : </b><br> who ever buys the property isn’t buying the debt. they just buy the property. the debt has to be dealt with prior to the sale. bankruptcy can sometimes wipe out a line of credit or second mortgage look at the bankruptcy discharge paperwork to be sure. good luck
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