Pre Foreclosure, stalled by BK

[Clifton Powell]

Good morning!

I am trying to figure out what the best thing to do for a friend is in the situation outlined below:

Home Value $570k

owed 1st mort $496k (current loan was modified and principal reduction completed for $100k reallocated in form of balloon payment at end of loan term)

no 2nd

arrears $30k

In process of going through bankruptcy, however, want to complete a lease with option to buy.  The fear is that there is a trustee assigned and 3 other debts included in the NO.  We have permission from homeowner to be placed on title to assure our ability to purchase.  

Would it make sense to negotiate with the lender direct as opposed to letting trustee work with them? Can we remove the home from the BK?