1st Shortsale
Hi guys,
Can you tell me if this is a good candidate for a ss?
FMV 155k
1st bal. 111k (4k behind)
2nd 26k (2.5k behind)
I know this is a dumb question, but do you think the second would be willing to accept ss even though there is some equity in this place? If fmv was 175k what are the chances they would accept a ss if any? thanks!
Numbers alone ($155FMV) don't seem promising, to me. The first will be made whole... and the second might as well.... no real incentive... so, for there to be sufficient motivation for the junior to consider accepting less... you must have a least one compelling reason.
property condition? neighborhood?
If the FMV is $175... there is even less reason for them to consider accepting less.
[addsig]
The less equity in a house the more likely a lender will be to accept a shortsale offer. If you can combine this with anything that would make the house hard to sell..like TheShortSalePro
said house condition ot neighborhhod then the likely hood of a short sale happening increases. You are basically going to try and convince the second mortgage lender that the house will be nearly impossible to sell and that it will be a long time before they ever get their money. You need to convince them a short sale is in their best interest.
Thanks guys. Thats exactly what I needed to know. Now, if the FMV is 175k, would you suggest doing this subject to? If I persue this, I'll be reselling because I dont think I can rent it for enough to cover all expenses. The place is in fairly good condition (the owner is a contractor that was injured and now is out of work and has med bills etc..)
IF he owes 136K + 6.5k to catch him upand the fmv is 175K it looks like a good idea to me. 32ishK equity built in.
the only thing I would be worried about is the interest rate of the second mortgage because they are usually a higher rate and it might be worth it to finance it yourself or through an investor to lower the monthly payment. This would be a non issue if you were going to take possesion and put it right back on the market.
Maybe someone with more experience can chime in since I'm pretty new to REI.
what's the debt service on the 2 existing notes, and can you aford this neg. flow until the place is sold?
The first's int rate is pretty good 6.75. 1075/mo piti. I somehow missed getting the second's int rate but the mo. payment is 391.00. I'm planning on putting it right back on the market. Right now I've got 2 duplexes (I'm only 25 and have been playing the game slowly. Started with no cash at all. I remember not being able to buy a cup of coffee across the street from my first house.
Couldnt even find enough change. I've read 30 + books on everything from sales, subject to, negotiations, flipping, financing, rehabbing, etc.. Anyway, I still dont have any damn money but my credit is 730+ so I should be ok. I'll probably have to do a cash advance or Heloc on my first duplex ( I have about 20k equity in it)[ Edited by RRIDL21 on Date 07/03/2004 ]