Does The First Have To Be Foreclosing To Short The Second?
I've found an opportunity where the first is held by Wamu, 140,000 and the second by Home Eq, 15,000. Both are 4 months behind, but neither have filed foreclosure at this point. The owner just wants to walk away. The duplex needs repair. The first may be OK if they foreclose, but the second will definetly be out. It is not rented on either side, so there is no income coming in.
I've attemped a First mortgage SS with HomeEq in the past and in their SS package, they request the 1st demand for payment letter, if applicable.
I would like to keep this unit for my portfolio.
Does the second holder usually require a payoff demand letter from the first, or do you usually approach the second holder with an offer regardless of the status of the first?
Thanks in advance for your help.
a current statement from the first indicating delinquency should suffice... you can't provide what doesn't yet exist.