Need Help
Alright guys and gals,
Here are the numbers
FMV=72k
1st motgage=53,966
2269.80 behind (3 months)
2nd mortgage=22,908
1302.27 behind (3 months)
Sellers rental property, She fell behind because of medical bills. She is going to file bankruptcy to keep her primary residence. The bank is going to start the foreclosure process on April,9. I requested a short sale package from the 1st mortgage holder. This is a 2br/2 1/2ba town home. It is also in good condition (I know this isn't the ideal situation for a short sale). Should I try to short the 1st , if successful, short the second or vice versa. Discount the 2nd and take over the 1st subject to. As you can see I am new to this. I just wanted to pick some of your brains that are more experienced in this type of deals. Your help is appreciated.
P.S.-My exit strategy is to be able to flip the property or anything where I don't have to hold. If I have to hold then I will use a cash partner or hard money lender.
Thank you all
From what I understand, her filing bk soon may rain on the parade. The court could overturn the deal since the sale was so recent.
Is the distressed Seller able to maintain payments on her primary residence? Are there other bills that necessitate her filing BNK?
On the rental property: I don't think there is much incentive for the first mortgagee to entertain a discount. In my opinion, any hope that you have to structure an acquisition would depend upon your ability to purchase the second via an assignment at a steep discount.
Then, I would seek a forbearance &/or loan modification on the Seller's primary
to enable her to keep her home, and avoid bankruptcy.