Am I Thinking Halfway Right?
I sent out about 80 letters to people in preforeclosure and just got a response. I was scared and happy all at once! 
First the facts for this particular house:
Auction end of February
Listed at $215k on MLS
First mortgage $154k, second $30k
Attorneys are involved (not sure the extent yet or how that affects me)
I think this would be a great short sale if the bank will do it. I'm going to meet with the people tomorrow. I need them to sign an authorization form so that I can talk to the bank (right?). If the folks agree to move forward with me, what do I do with the realtor who listed this? What makes sense for an offer to the bank? Any words of inspiration in dealing with the people? I don't want to promise anything I can't match. If the bank won't short sale, am I dead in the water or can you do a subject to with this type of deal? I just got John Locke's book on subject to's but am not entirely familiar with it.
Thanks for any help in advance,
Paola
If you can show a lower FMV from comps in the area, You may try to discount the 2nd.
The second and the first are both in a pretty good position. The first will certainly not negotiate with you, however the 2nd may be interested in you have a solid presentation. If you can buy the 2nd for 10%-30% of the balance, this would be a good buy for you. Also, you would need to work a discount commission with the realtor.
If you were to take this one Sub-to, you would have to pay the reinstatement cost on the first, and if you didnt discount the second, you would need to pay them same for it as well!
Best of Success!
BAMZ