Ocwen holding 2nd mtg - possible short sale?
Seller calls with home valued in the mid 180's (with some updating -10k) and if I sold it retail. They owe a total of 168k (haven't verified this yet.) They owe 125k to Wells Fargo for the first mortgage and have fallen behind repeatedly and caught back up. As of 4-1-03 they will be behind again and not get caught back up. (Now they owe the IRS taxes for last year.)They are moving to an apartment and going to walk from the mortgages.
They are "5-6k" in arrears with Ocwen who has not sent them a letter about foreclosure or anything yet. She called Ocwen (got the attorneys office) yesterday to see if they'd be willing to take a discount to sell (seller doesn't want anything but to downsize her $1600+ payment). They said "that wouldn't work for them at this time, but they'd be willing to reduce payments and interest temporarily until the seller could sell the home."
I told her I could get a letter of authorization and try to talk to Ocwen myself. Should I get a signed purchase and sales agreement with what I'm willing to pay, or negotiate with Ocwen first?
After reading what I could find on short sales, one question I have is: what would be the purpose of getting a deed if I don't have a sure sale? Should I try to get a LP buyer while I'm negotiating this short sale? I think it's too far gone for that. I worry that it wouldn't go through and I'd owe a $1600+ payment when I MIGHT if I'm lucky get $1500 in that area. AND what if Ocwen decided to foreclose?
I think she told Ocwen she is not yet behind on the first, but is going to be. Probably her first mistake. I told her not to. Plus Ocwen's reps have probably driven by and seen that they are still there at this point, but once they move I might be able to convince them that they're bailing and this puppy is going into foreclosure and you won't get ANYTHING!
I guess if I have the deed (do I tell Ocwen that if I get it?) I could say I'll let it go into foreclosure if they don't negotiate. Once it's vacant send pictures and comps showing it's worth LESS than 180 even. Supposedly it appraised for 170s four and a half years ago, it's a nice neighborhood but it won't retail well without updating. It's in good condition. We might be able to go LP over 200k with the updating.
The seller is submitting the paperwork to show hardship. I guess I need to hear from someone who's worked with Ocwen. I understand they are difficult but this is a second!! I need some ideas! I thank you in advance. Let me know if I'm forgetting any details. Thanks!
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