selling home on short sale

[rhondasmithhome]

I'm in the process of buying a house that is fixing to proceed with foreclosure the sellers are in chpt 13 and they have an 1-2 first had an statement sent in may 2005 showing principal balane 90000 and I had gotten payoff but they were not suppose to release it and said 7100 got the payoffs from the attoney and he is not really even stated proceeding with foreclosure they said they have not made a payment in a year and half and they were proceeding with foreclosure at the chpt 13 meeting wife has some checks an statements but not many there loan was with colonial sold to home send and babk to colonail and then sold to washington mutal then back to colonial home was purchse in 98 fo 99 had arm wher apr was not over 6.0 but got down to 4. they are now saying they owe 111950. on 1 and 8100.0 on 2nd
home is not worth that if they do a short sale will the difference go back into there chapt 13

[HHM]

PUNCTUATION is not optional...

If you want any type of reply, please re-write your post as I am having trouble figuring out what you are asking.

[Minnymouth]

Ok, is this what I'm reading???

House is worth $90,000....... has 2 mortgages (one - $111,000 another $8100.00.

Are you asking if the house only sells for $90,000 and $119,100.00 is owed on it does the differencego back into the Chapter 13 for the people to pay...... (approx $29,100.00)????

Is this what your trying to say????

I would think that interest, etc would make a big difference in what the actual payoff of the property is.....

Any suggestions for him, anyone???

Minny

[HHM]

First thing to know about short sales is that the Lenders have to agree to it, as it will be the only way to obtain clear title. Basically, your asking the lenders to accept less than what they are owed because the property simply cannot be sold to satisfy the debt.

In most states, a 1st mortgage holder is not entitled to a deficiency balance, but a 2nd mortgage may be entitled to one.

Thus, to answer your question, I do not think the unpaid balance gets rolled into as a general unsecured debt in a chapter 13, at least for the first mortgage.