SS Offer
I have an upper class property under contract in SE N.C. There are 3 mortgages on the property. My question is this: Is there a general rule of thumb as to what percentage to offer the 2nd and 3rd lenders as a short? I remember reading somewhere that the 2nd should be offered about 30% and from the 3rd lender on, offer a token payment of about $1,500. If some of you guys with lots of experience in this area will share your expertise, i would greatly appreciate it.
Cash4,
I just got through looking at REO properties in Gwinnett County, Ga priced from $50-125K. Most of them sold for BPO and some higher. I bid $90k on one yesterday, and was told there was two full price cash offers. BPO on this property had been reduced to $99,995. I do not know what the original price was.
cycledog
Hi cycledog. What were these houses worth (ARV or FMV) in comparison to the BPO? It was my understanding from my reading, that Banks get roughly 60-70% FMV at auction and are willing to take about 60% to avoid the wait and legal fees.
Thank you both for your replies. I was looking into short sales because I thought the properties could be bought for less than 75% LTV and therefore easier to get hard money loans on. I suppose I will have to work on making the house appear to be worth less when I talk to the bank.