170k.... 3 liens... need some advice...
got a motivated seller.. a month behind on payments.
4bed/2bath
home value: 170k
amount owed: 170k
1st: 80k
2nd: 70k (home equity loan)
3rd: 20k mortgage
monthly payments respectively:
750,1100,250
I need some creative ideas to help this guy out. [ Edited by mcmoxie on Date 05/22/2003 ]
I'll be meeting with the seller soon... If I can get the 2nd and 3rd at a steep discount, what's the next step? Do I take the first lien 'subject to'? When exactly do I take the first subject to?
Don't waste your time with the first mortgagee. They won't discount much, if anything. Start with the second mortgagee. Do some research. Do they normally join in a foreclosure to protect their position and bid up at the Sale? Do they sell the mortgage? What is their practice?
If your argument and presentation can support a discount, then make your best deal. When you have their answer in writing, you'll know what you can offer the junior 2nd. You should probably just offer to purchase the junior 2nd mortgage via an assignment for cash, a thousand dollars or so.
TheShortSalePro
, thanks for providing a direction on how to go about this.
Ok, we just met with the seller... The house needs a lot of work. Repairs will be high. He's in major financial stress, so getting a convincing, emotional hardship letter won't be a problem. We're going to meet with them in a few days to get the loan information and everything since they didn't have it at the time. We'll get a contract signed and get the Authorization to Release. We'll research the 2nd.
Now, let's say the 2nd junior agrees to a discount, then do we go ahead and do same for the third? If the third agrees to a discount, what exactly do we do with the 1st? Do we take it 'subject to'?
I was thinking that after we get the 2nd and 3rd, we then wholesale the property... is that correct?
Thanks again.