Can I Make A Play??
Hv investor who took property "subject to" and recorded a warranty deed in 6/2003. The actual mortgage holder(on both1st & 2nd) is nowhere to be found, and the property is now in foreclosure. There is a 137K 1st, 6k in arrears,
a 30K 2nd, 2k in arrears
a HOA lien 2k
tax lien 7k
total of 184k on the property
Deed holder wants to deed property to me and go back north and hv me give him certified funds for his legal bills of $2800.
FMV IS easily $195k (5BD/3BA, CLEAN)
I hv never done a short before -
hv visions of settling w/ the 1st for 143k, hoa for 1k ,
tax lien for 6k
seller for 2k,
2nd for 3k
Total 155k
However i do not believe the 1st will allow me to pay off w/o authorization fm note holder ? and how about the 2nd?? If i got a deed and did not record it i cud negotiate. does the 2nd hv any recourse here?? Do i need to skip trace the note holder and get him to do something?
Don't want to put myself in jeopardy here. The investor claims he has someone else who has agreed to give him his $2800 and will satisfy the 1st and do away w/ the 2nd, but prefers to deal w/me because of our rapport??? Just does not set right. I'm not sure.
Please.....
Well let me boil this down to 1 question "Is a mortgage co allowed to negotiate with me w/o the approval of the defaulted note holder (who has disappeared) bearing in mind that the property itself has bn deed to another party who wants to deed it to me."
My question is either too basic or too complicated (which is too hard to believe on this board). gosh, can I even think of negotiating w/o the note holder being arond??
Thks,
Bob
Hey bobabby,
Only 3 messages in a row? Not bad. keep posting. You might get an answer your self after all.
At least he said 3 different things and not the same thing over and over. We got it the FIRST time.
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&thold=-1&mode=flat&order=0&sid=517#2327
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&sid=523&mode=nested#2385
[ Edited by WheelerDealer on Date 03/15/2004 ]
The 2nd mortgage holder and hoa stand to lose the most. The 1st and tax lien will have to be taken care of. Do an agreement with the deed holder that if you can get the 1st mortgage holder to negotiate you will pay him his $2,800.00. It sounds like the deed holder is lying.
Thank you kindly,
I get the feeling that 'm not getting the full story here also, but hv never done a short before so i'm just not sure of everything to look out for. I don't think i shld give him any cash at all until i am able to talk w/ the holder of the first. or if the holder of the 1st will neg w/me directly/
Appreciate yr thoughts.
I'm as new as new could be on these issues, but common sense and intuition are tools that can be used anywhere and just the fact you are posting this makes me think you may be leery of this situation in the first place. Where did the mortgage holder go and why? Why would he run away from his debt without so much as look back? How did the investor get the option and from who? Something here is fishy and you are right to be suspicious. Only a newbie perspective though.
You are very much right Leatherneck. Common sense is common sense and you either have it or not. I am also new here and I really don't like that among many answers on majority of posts, there is barely one poster addressing the subject. What do you think about this particular situation WheelerDealer? Can bobabby make a play? Com on man, share with as newbies, don't hold back.
I doubt that you will be able to perform a short sale on this because you can't get permission from the mortgagor (original seller) to review the loan info. You MAY be able to buy the notes, though, from the lien holders, and at a discount (like a short sale) because they are in default.
The best chance to do that is with the 2nd. If you can get it a 10-20% of face value, both they and you have a decent deal.
Doubtful about shorting the tax lien since they will come before any liens. Of course it really depends on what type of lien it is.
Before you start handing out money, make sure that everyone is onboard with whatever you plan on doing, that all the numbers are correct, and everything is handled legal and proper. Divy up the funds only at the closing table.
Roger
Thanks raj and the other newbies. I see, the best I cud probably do is negotiate for the notes themselves at a discount with the holders. Wud i be talking with someone in a dept other than loss mitigation at the respective banks? I wud then be the primary and secondary lien holder on the property at the auction. How wud I conduct myself at the auction in this instance? This deal is long gone but it wud be good to know. In both cases I wud hv to be prepared to fund at closing. in the later case i guess there wud be no need for a hardship letter or a HUD or really anything else except for me to fund it out with the current lien holders before auction. What exposures am i taking on here that are not in a short sale?
Thanks