First Ss Did I Miss Anything?
170k FMV (listed w/realtor 5/1/2004)
1st 97k w/5k arrears/fees
2nd 32k
Offer: 100k (pay owner after closing)
Goals:
1. make sure the $ I’m putting out ($5k arrears, $5k to get the 2nd out of the way) is used as the 10% downpayment by the lender
2. finance in corporate name (combo ARM & line)
We’re prepping the settlement letter for the 2nd this weekend (hardship + new construction across the street / next subdiv is selling @ $180k, nobody wants this old split but me, BK is the next step...). Is $5k realistic to get the 2nd out of the way? Anything I should add to get the 2nd to act?
Owner (elderly couple) will lease back on month to month basis. I will use lease agreement & take deposit/rent $ from proceeds off the top.
Now, there’s a hard money guy that will finance the deal in corp name but what about the re-fi? Alternate scenarios (investor friendly lender in GA) are very much appreciated. If push comes to shove, I can finance in personal name, but I really don’t want to do that anymore.
Did I miss anything? Construction/rehab is my forte.
When the second's BPO and/or appraisal comes back at $170,000, and they know that the first is owed about $110,000, what is the strength of your argument to compell them to accept $5,000... instead of being made whole either from a conventional sale, or a forced, public foreclosure sale?
[addsig]
ok, so I need to think like the 2nd while prepping this letter. Let me talk to my partner.
if the 1st 4closes, wouldn't the 2nd get wiped out?
Let me ask you a simple question. If it was your job to safeguard and cash a $32,000 'check' ... and knew that there were funds in the bank to cover that check...
How would you explain to your boss that you traded that $32,000 check for $5,000?
Junior liens are subject to being extinguished at a foreclosure sale.
It's not automatic. They have every right to join the lawsuit, and/or bid at Sheriff's of Trustee's Sale.
[addsig]
thx SSP. I need to be challenged in my thinking b/c this is not my forte.
We called the 2nd 2 days ago & they said they would entertain all offers. If I'm hearing you correctly we have to have a compelling reason for asking them to do this & the threat of BK may not be enough b/c they can go thru the process & may get all their money. Correct?
If there is equity, bankruptcy assures them that they'll get their money. Lenders love it when the bankruptcy courts act as their collection agent.
Understood. Thanks for your insight!
Quote:
On 2004-06-04 12:57, TheShortSalePro wrote:
If there is equity, bankruptcy assures them that they'll get their money. Lenders love it when the bankruptcy courts act as their collection agent.
I'm confused, if the homeowner files Chapter 13 the lender gets nothing but payment plan payments until the homeowner defaults again, then we start all over again from the beginning except the lender's lost 6 months worth of interest.... no?
Mike(NC)
Ordinarily in a 13, the regularly scheduled monthly mortgage payment is made directly to the mortgagee... PITI. In additiona, the BNK 13 plan payments are made to the Bankruptcy Trustee who distributes the payment to creditors per the plan.
If the mortgagor misses an outside the plan payment, the mortgagee can move for the lifting of the automatic stay... and resume foreclosure.
[addsig]