I Still Don't Understand Short Sale Seconds
A real newbie here. Do I understand that if I have a no equity property with a first and second, that it would be good to look at the first's numbers. Then determine what, if any equity is there for the second? Then while negotiating with the first, to contact the second and make an offer? What if they say no? Will they? I know that it all comes down to 1 or 2 BPO's as far as equity. Will most of the big second lenders take an offer.
I have a property in Ohio with a 75k first and a 25k second. Sheriff's appraisal is $90k.
Any help and thoughts will be appreciated.
:-?
Consider starting your negotiations in reverse order... since seniors are less likely to discount when there are juniors positioned (and expected) to take a hit.
Equity sets the tone for all negotiations.
In your example, for the first mortgagee to accept less than they are due, they would probably insist that the second mortgagee get paid little, or nothing.
I would approach the second, and see if they would consider accepting $500 or $1000 as payment in full. Or, offer to purchase their mortgage via an assignment.
Then, after you've ascertained the second's position, you could approach the first for a discount....
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Short Sale Practitioners can't predict, or guarantee results... but can take steps to insure the likelihood for success....[ Edited by TheShortSalePro on Date 04/13/2004 ]