Third Mortgage In Foreclosure.
If the third mortgage is in foreclosure, they have first option to purchase the first mortgage correct? What happens if the third mortgage goes all the way to sheriff sale? I am trying to get the 3rd mortgage to come to 10-20% of what they are owed but I am unsure how this will affect it. Will it make the first mortgage more negotiable?
Thanks,
Chase
It depends on how much the 3rd is for, vs. the 1st and the current market value. Can you elaborate on the numbers?
If the 3rd is much less than the 1st and 2nd and doesn't stand much of a chance of getting anything at the foreclosure sale, they are usually motivated enough to take $500 or $1000 to satisfy.
1st - $58k
2nd - $4.2k
3rd - $36.5k
4th - $5k
The 36k one is the one in foreclosure. The second has agreed to payoff of $2.5k and the third has agreed to $25k. This is not nearly enough to make this deal workable. Another $20k would have to come from somewhere. If the 3rd is in foreclosure, will the 1st be likely to accept a low payoff? I have only negotiated with the 2nd and 3rd as they are with the same debt collector.
Thanks
Chase
Quote:
On 2004-11-10 16:02, crf3boys wrote:
It depends on how much the 3rd is for, vs. the 1st and the current market value. Can you elaborate on the numbers?
If the 3rd is much less than the 1st and 2nd and doesn't stand much of a chance of getting anything at the foreclosure sale, they are usually motivated enough to take $500 or $1000 to satisfy.
There is no reason for the first to take a nickel less than they are due. Before the first position second, second position second, or third position second sees a dime... they'll be paid in full.