Deal With 2nd And Not 1st?
Suppose a 1st and 2nd exist on a home and bring the total owed to around FMV. The homeowner is deliquent on both and you can make a case for a lower FMV due to required repairs. Can you short the second and give the first the complete payoff? Would a second go for this given that they are facing a foreclosure situation and may not get anything? Has anyone tried this technique?
Yes, the second will be most negotiable. If you can get the second to take less and give the first full payoff, and still make the deal work, then thats the way to do it. If the second won't negotiate, you can try to give the first a try.
Quote:
On 2004-11-17 00:35, cygnus wrote:
Suppose a 1st and 2nd exist on a home and bring the total owed to around FMV. The homeowner is deliquent on both and you can make a case for a lower FMV due to required repairs. Can you short the second and give the first the complete payoff? Would a second go for this given that they are facing a foreclosure situation and may not get anything? Has anyone tried this technique?
"Has anyone tried this technique?"
Yes... this is the essence of the art of short sale
acquisition.
Thanks guys.
I was mostly wondering if there were any real big, out of the ordinary pitfalls associated with type of deal. It doesn't sound that way.
There are always avoidable obstacles associated with any unconventional acquisition technique. In fact, some people write books, articles, and essays about them...
[addsig]
since the second is the junior position they will be more than likely to deal than the first....km