Subject 2..Need Help Pls.
Here is the deal:
1st mortgage....61,000
Arrears on 1st.......5,000
2nd M.....................21,000....garnishment
To seller.............. 2,000
Total....................89,000
Fmv...............139,000
Questions: Should I try to short sale the 2nd or how should I try to work out a deal where I don't have to put out that much cash?
Question: In subject 2 can I list the property and sell with a realtor without having to L/O?
Thanks....
Joyce
Let me say, I am new to REI and doing lots of research, but this seems to fit the short sale profile.
If you can take it over and give the seller his $2K, then make up the first mortgage's back payments (5K), and offer the 2nd Mortgage holder a deal. They are garnishing now so they may take a small percentage. Even if it took 50%, you'd spend $17.5K now to get an $89K property with a $61K loan. That's still $10K equity, maybe more if the 2nd deals.
If you sell it on a CFD for $95K with $5K or so down, that gets back some of your initial outlay, then you get a monthly cashflow for 2 years, and around $15K on the backend. Seems pretty good to me, assuming you have the cash to outlay now.
I'd appreciate hearing from some of the more experienced people on this, but that is my first take.
1st mortgage....61,000
Arrears on 1st.......5,000
2nd M.....................11,000......short sale
To seller.............. 2,000
Total....................79,000
Fmv...............139,000
I have corrected the original figures to reflect a 50% short sale. Now I have a house that has 60,000 equity, if I sell immediately on the market. Question is may I now flip this house and sell quickly being it is subject to ? Am I correct on the equity part also?
Thanks......
Assuming you have time. Do not correct the foreclosure upcoming from the lst. Use that pressure to discount out the Garnishment. Remember, you are only paying for them to abandon the recorded lien on the property. They may continue to pursue the debtor. Dependent on the company you are dealing with. Should go for about $2,500. With the pressure of the upcoming foreclosure sale.
After which examine the property with great care and sell it to some nice young couple who can refinance or have enough money to make a proper downpayment.
Get rich Lucius
Thanks for the help...Let's see if I have it right.....leave the 1st for now....call the 2nd company to discount garnishment because foreclosure is coming and they make get $0......should end up paying 2500...right...if lucky.....then I can take property subject 2 and sell to a nice young couple with money........even if I sold property for 125,000...I make lots of money right?