Foreclosing 2nd Mortgage

If the 1st mortgage is behind and the 2nd is current, will I be able to discount the 2nd? Thanks



1st: $77k

2nd: $15k



Arv: $100k

repairs: $12k

Comments(2)

  • ibuyhouses2013th January, 2007

    I was planning on discounting the 1st mortgage to around 45-50k. What you think?

  • tbird5613th January, 2007

    Oh, I get it now. You are planning on a short sale for the first. And there is no foreclosing of the second mtg. It was a little confusing.

    If you can get the first shorted to these figures, the deal would make sense. However, if your second holder knows this, there is little chance he would discount since he has always been paid and his investment is even more secure because of the LTV.

    However, if he was thinking the first was going to foreclosure, too much repair for him to jump in to secure his position, and he could lose everything......

    I would say it all depends on how much the second holder knows

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