I would scratch Fraternity 1 and concentrate your efforts on Fraternity 2, however, I'd also consider other chapters on campus, providing there are more than just two.
Did the school put Fraternity 1 on academic probation? Not sure I've ever heard of a fraternity chapter being put on academic probation before, and because of this probation they weren't allowed to take in any Freshmen, but were they allowed to extend bids to sophomores or upper classmen?
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