South Florida Short Sale

[Dave House]

A friend of mine is in a difficult situation. He's "way underwater" and in danger of losing his home to foreclosure. BofA has a first and is in the process of foreclosing but there's a private lender who has a second mtg.

My friend says he completed a hardship package and BofA agreed to let him do a short sale, if he could find a buyer. He had one offer accepted by BofA but 3 days before closing, the bank wanted $5000 more and the deal fell through. Since then, he has filed bankruptcy, which he says only bought him some time before BofA actually forecloses.

In hopes of keeping my friend in his home, we've discussed the possibility of me buying the home before BofA forecloses and then either renting it out to him or selling it to him while holding the note.

1. What's the best way to move forward trying to buy this property before BofA forecloses?

2. How does the 2nd mtg affect the situation?

3. What happens to the 2nd mtg, if BofA forecloses?

Thanks!