1st And 2nd By Litton, The 1st Is Foreclosing, Ideas?
Alright short sale pros, here's a scenario...
The house is worth about 530,000. Both of the loans are with Litton.
1st Lien - 385,000 (plus 14,000 back payments)
2nd Lien is about 100,000 (and current)
Obviously, the first is foreclosing here. Question: what experiences you folks have with Litton? Also is it even worth trying to make an offer on that second if they're both owned by the same lender?
The way I reason is the LTV right now is at about 90% and they may be interested in discounting that second because it would be wiped out at the auction, wouldn't it?
Please share your experiences. Thank You!
Litton is a loan servicer. Just because they service a mortgage loan doesn't mean that they own the mortgage. They may, or may not. The first may be Company A, the second may be Company K. Each with it's own servicing criteria.
Get as much info on your adversaries as you can before you start negotiating.
That's what I was afraid of. I did research them online and noticed that they were a loan servicing company. Anyway, hypothetically, is there a different strategy involved with the scenario where one lender has two loans on the property, compared to two different lenders? Thanks again.[ Edited by narasland on Date 02/02/2004 ]
In a case where a single mortgagee owns both a first, and a second mortgage...
the mortgagee must be pretty certain about the subject's market value.
Arguably, the most important piece to the short sale puzzle is the mortgagee's perception of market value. If you can't shake their perception to negotiate a discount, you have little or no leverage.
the first is and the 2nd are probably not really aware of each other. They could be working together. The weird thing here is that you said that the 2nd is current, but the 1st is 14 paymetns behind. That is something I have never seen before. Usually, the 1st is current and the 2nd is behind..
So, in this instance, I would pursue the 2nd for a short. If they dont want to play, then move on to the next deal.