Dealing With 2nd On BK Property
This property has just been discharged from BK. House appraised for 44k. No work to be done--in move in condition. Bank will sell to me for 42K--however, there is a 30k 2nd and they refuse to deal--offered them 3k. Since this has come out of BK, do I need to work with 2nd?
Why buy a house woth $44,000 for $42,000. You must have made a typo here. There are several ways to be discharged from BK and several chapters as well. Would need to know more to be able to help.
Ted Jr
Whoops--Worth 68K. They filed a 7. The owner just told me it was discharged. What should I ask him about discharge?
Thx for your help
Has the bank acqured the propetry?? I don't see how they could consider selling you something they don't own and wont own until it goes back to them after the foreclosure sale.
What is (or was?) the amount of the first? Did the owner turn the property over to the bank in lieu of foreclosure or does the owner still own the house?
The bank foreclosed on this mortage after it was discharged from Chapter 7. The 1st mtg. cancelled the sheriff sale on 11/21 due to my short sale offer--they are still considering it--don't know what is taking them so long. I spoke w/2nd and they will not discount. I only offered them 3k--on a 30K 2nd. Wasn't sure what would happend if I didn't give them anything.
[ Edited by JeanneP on Date 11/25/2003 ][ Edited by JeanneP on Date 11/25/2003 ]
Is the second with the same bank?
Also have you enlightened them on the fact that the house isn't worth the total amount that they are requesting, and they shouldn't have been so quick to loan that much on property that isn't worth it. I recently closed a deal with a 1 and 2 mortage it took about 2 weeks to neg. with them.
It's simple, the homeowner can't or won't be making the payments, however, " you can and will."
They can accept your offer or chose to foreclose, however the first will always take priority over the second, so either they accept your offer of 3K and take the hit on the rest or get nothing and the house can either set vacant and cost them more to repair or the homeowner can live it up on them (the bank) Free!
Usually moving up the chain has always been helpful to me.
I would let them set on it for a week or 2 then go back to them and lower your offer by 4K on the first and 1-2K on the second.
.........just a thought
Toni
Hey Toni, great ideas--will do both.
I had told the 2nd they would be wiped out if house goes to foreclosure--didn't seem to bother them! However, I like your idea and will implement tomorrow. thx
jeanne
Those are some good ideas Toni! Sometimes out of pure stupidity or ignorance, a 2nd will be incredibly stubborn! As toni said, it may benefit you to call in and find out the name of the supervisor for the L/M rep that you are working with. Fax a letter directly to him along with your proposal package, and let him know that you are giving him one more opportunity to review their postion. When I get to this point, I remind them that I am paying cash, and I give them a deadline of a few days to respond, or my offer will be withdrawn.
I've had 2nd's come to their senses, and I had others that remained stubborn and lose their shorts (just as I told them they would). Give them a deadline, and if they dont want to work with you at that point, just remember one word . . . . NEXT!
Best of Success!
BAMZ
Hi BAMZ, thx for your input. Yes, I was a big surprised when they said they wanted the whole 30K, especially since they will get 0 if the hse goes to sheriff sale again. I will definitely call them again--get name of super and go from there. And, thx for reminding me about "NEXT"!!
Jeanne