They are selling because they need major debt relief. They own more on the house than the house is worth and they are paying 13% on their loan. They have a 1st of 104,000 and a 2nd of 12,000. The house is worth 110,000 and they just want to move into an apartment. Does this sound resonable to ask this question! Thanks for your input!
Make sure you understand that even if you get them to continue to pay on second...if you were to get cashed out by new financing, the proceeds from that sale will go to the first lender, then the second lender, and you may have to make up the difference if anything is still owed.
A second option would be to short the second lender and pay them off.
call them up, tell them you represent Mr. and Mrs. Seller, they have fallen on hard times, they can no longer make the payment, the house is over leveraged, they are thinking about filing bankruptcy, and you want to know if they would accept less than what is owed to them as the payoff. Since they owe 12K, ask them if they would accept 1K.
You can ask anything you want. Will the Seller go for it is the question. Why are they selling? How is it a win win? Hope this helps.
They are selling because they need major debt relief. They own more on the house than the house is worth and they are paying 13% on their loan. They have a 1st of 104,000 and a 2nd of 12,000. The house is worth 110,000 and they just want to move into an apartment. Does this sound resonable to ask this question! Thanks for your input!
Make sure you understand that even if you get them to continue to pay on second...if you were to get cashed out by new financing, the proceeds from that sale will go to the first lender, then the second lender, and you may have to make up the difference if anything is still owed.
A second option would be to short the second lender and pay them off.
What does it mean to short the 2nd lender
call them up, tell them you represent Mr. and Mrs. Seller, they have fallen on hard times, they can no longer make the payment, the house is over leveraged, they are thinking about filing bankruptcy, and you want to know if they would accept less than what is owed to them as the payoff. Since they owe 12K, ask them if they would accept 1K.
At 13% interest is this a deal that you can sell to a potential buyer?