Shorting A 2nd
I have mkt value property at 145k. Owe 120k on the 1st, 33k on the 2nd. A Private local bank holds the first. Shorting the first is not a problem, what should I offer on the 2nd 10%, 20% what. US bank holds the note on the 2nd.
I'm assuming the house is going into foreclosure. If so, I'd start offering the 2nd 10/% and see what they say. It's never going to hurt you to start low. Best case is they say okay and you save alot of money. Worst case is they make you pay more, right?
Ryan J. Schnabel
I'm curious why 'shorting the first' is not a problem. There appears to be a sufficient cushion of equity to assure that they would be made whole in a foreclosure.
I would guess he is refering to the ARV of the home. I am not a short sale expert here but I found it worked well for me to say that the first mortgage holder says they are following HUD guidelines so I am only allowed to offer $2000 for all junior mortgages. Since there is not a third, offer them $2000.
I'm not sure if this will work but it gives a good starting place. Maybe SSPro can give more advise too.