Need To Short-sale 2 Mortgages On 1 Property In 2 Weeks
I have a prospect being foreclosed (first mortgage) that has a second mortgage as well. The property sits on 15.5 acres and is scheduled for auction on July 23. This is my first short-sale scenario, and my mentor is too busy to help me right now; hope some of you out there can fill in! The second mortgage holder (individual) has sent a letter to my seller offering to accept 40K on the 52K note. I'm thinking I will be able to get this figure lowered substantially. The house is in very bad shape, so I'm getting comps on the land and preparing to put together a short sale package for the first, basically taking the position that the only thing of value is the 15 acres.
My question is, in what order should I contact the lenders - first lienholder first, 2nd lienholder 2nd, or do them simultaneously? Also, what sort of success have all of you experienced short-sellers had with offering a first lender a discounted amount on only the land? Any advice you can offer regarding making this all happen quickly is highly appreciated.
Cheers,
Storm
In order to make any intelligent comment, you would first need to disclose a bit about the first mortgage, including the type, and the amount of the first mortgage, and the property's as-is, FMV.
Is your state a judicial or nonjudicial foreclosure state?
"In order to make any intelligent comment, you would first need to disclose a bit about the first mortgage, including the type, and the amount of the first mortgage, and the property's as-is, FMV.
Is your state a judicial or nonjudicial foreclosure state?"
My apologies - I should have included more info. The first is a 30-yr fixed @ 12%, principal is $98K. The comps I have received on the acreage put it at about $78K, with the house being worth an estimated $2-5K in its current state. I'm waiting on additional comps to determine ARV.
I'm working in Michigan, which I believe is a nonjudicial foreclosure state. The attorney for the lender files public notice ~30 days in advance of the auction, and the redemption period varies. In this case it is 6 months.
I hope I've given enough information, but I'm so new to this you may need to specify what else you would need. Thanks for your help!