Working to buy a house before foreclosure second mortgage issue

[Brad Hasseler]

I'm working with a family to purchase their property before they go to sheriffs sale. The price will be what ever is owed because they are also in bankruptcy. The catch is the second mortgage on the property.

According to the owner, and he has showed me, Ditech is servicing his primary and secondary mortgage. They show his secondary mortgage as closed, but on the title search it shows the secondary mortgage held by Millennia mortgage out of California. I looked into it and Millennia mortgage is dissolved. To make matters worse Ditech is in its second bankruptcy in 14 months. Anytime the homeowner tries to get any info on the second mortgage they just transfer him to an infinite hold. Literally 20+ minutes and no one answers.

Has anyone run into this? What can I do? This will be a great flip opportunity if I can make it happen.