Need Help A.s.a.p
I need help on a preforeclosure www.deal.The deal is as follows owner has relocated out of state www.permanently.The house in question has an ARV of about 165,000 owner needs to just pay off loan balance which is around www.96k.The property in question needs new roof and mold remadiation as well as many cosemetic remedies totaling around 25 to www.30k.Owner has contacted me disclosing to me that he has to loan balances of 80k first mortgage and a 2nd mortgage of 16k . 2nd is trying to foreclose on property. Owner has called me and is calling foreclosing agent to see what his payoff would www.be.Talked to owner today he advised me that if i give hime a purchase and sale agreement for 96k to payoff his interest in the property that i should send it to the foreclosing attorney. My question is if i sumbmit p&s aggreeement will that wip e out the first mortgage too. also would i need to submit a proof of funds letter to atty and an earnest money deposit along with the purchase and sale aggrement , any help is appreciated
If he owes a total of $96,000, then your offer of the same would pay both 1st and 2nd. Buyer and seller would have closing costs on top of that.
What your are proposing is like a regular sale. You would typically make a earnest money deposit, etc.
Now if you wanted to step out there, you could try a short sale. I would recommend searching article on this website for "short sale". A short sale is when you negotiate with the loss mitigation department of the lender, for both the first and second. Many times you can offer LESS than what the lender is owed.
Good Luck!
Defeintely learn more about short sales-- the second mortgage holder should talk turkey as soon as you mention "Mold Remediation"