Loss Mitigation Options
I have a home I just got an offer on for $1,000,000. The first mortgage I owe is $992,000 (WAMU). I also have a second (WELLS FARGO) for $75,000.
The net sheet closing costs estimates my only cost to be $40,000 in commissions due to my real estate agent.
$992 + $75K + $40K =$1.107K
Who do I speak with first, WAMU? WELLS FARGO?
Dannor, Do you own this home? or are you trying to do a short sale and make a profit?
Well, I do know about short sales, and the holder of the 1st TD has priority, unless the 2nd TD holder contacts the 1st TD holder before the situation is too far gone, so that they are still able to be paid if not paid off.
Hope this helps..
Dannor, you need to list your property with a realtor that has done short sells. A short sell is when a lender agrees to a reduced payoff. Unfortunately you usually need to be behind in the payments before the mortgage company will entertain a short sell offer. But you can always try. The realtor should do this work for you.
If you have other properties that have equity you may want to talk to Wells Fargo to see if they would be willing to move their loan to another property. If you can show them how tight you are on your cashflow and that you are about to default on the property, plus show them the after sell cashflow on how you will better be able to afford their payments, they may go for it.
Just a thought if you have the equity sitting in another property.
As far as the commission goes, you need to talk to your realtor. With no sale, there is no commission.[ Edited by dnvrkid on Date 09/21/2007 ]
I guess you could say i bought it sunbject to both, but hte first was the one foreclosing. I had hoped to acquire the 2nd at a discount. I know some here buy loans in default so thats why I was asking about buying the second at a discount.
Since the 2nd mortgage in question is not in your name, how would you get notice that it is in foreclosure?
[addsig]
Perhaps he used the POA to notify both lenders to send him all future notices (or simply changed the address).
[addsig]
how about i remove all of my story and just say this:
I know of a house that has a second mortgage that is in default. No payments have been made in well over a yr, the balance is 16k. How would one go about approaching the mortgage holder about purchasing this bad loan at a discount? Also, would they have any reason or interest to sell the mortgage at a discount?[ Edited by jllaco on Date 09/21/2007 ]
Or like I suggested, have a buddy blindly go after the second.