2nd Shorts
I just took 10 duplexes subject to last night. The arrears for the 1st mortgages are around 24k. The seconds equal about 1k in arrears. All of the first holders have started squawking about foreclosure. Most of the duplexes were financed with 80/20 loans.
I would like to keep the first financing in place since its not bad. I would bring them current for the 25k.
I would like to short the seconds. All of the second payments were missed last month.
My question is this: Do I need to have an NOD from the first to go to the second, or do I go the normal short sale route with second. Get their package and submit?
The values of the properties are around 130k each. with the first being 116k. The seconds are upside down regardless. The good news is, they have reasonable cash flow, I would just like to make it better.
Any and all thoughts are appreciated.
instead of seeking traditional short sales... since you'll have the owner occupant problem... you might simply ask to purchase the mortgages... via an assignment of mortgage, at a steep discount. The same short sale techniques would apply... just with less hassle.
I agree...and the short sale will be an issue with the title transfer. Maybe not on the 2nds but 1sts usually have title work done.
Also you should consider working out a loan modification wih the bank on the 1sts. I just worked out one on a 4plex with chase. It took them a month to assign the file to someone but I got what I wanted within 48 hours. The paperwork is in the mail. The rep even changed a bunch of numbers to make it look better for management to review which isn't illegal because she was simply fudging company policy--not law. Regardless, banks do not want to foreclose.
Nice job on the 10 sub2s! GOOD LUCK
That's a good thought. In your experience, what kind of discounts are the seconds willing to take? On a SS I was going to offer .10 on the dollar.
Thanks again! I'm excited about the deal. I have tried to get seven other dups in the same neighborhood, but they all fell through. Was getting pretty frustrated when, as Emerril would say BAM!, ten fall in my lap.
Frogger - What type of workout did you get?