Need help w/this! trying to get rid of the 2nd. sale is in August!
Hey all,
I got a buyer for a Foreclosure that's due for auction in August. only thing is, it's got a 2nd at $33k. The 1st is $127k and the FMV is $190k. The house needs $12-15k in inside coz.
My question is how can I (If at all possible) discount the 2nd so that my buyer can take the assignment? The payoff is $160k and my buyer says he has a budget of $150k.
Need help yall so I can move on!
Clif 
If the FMV is worth approximately $190K as is there is probably no reason for the 2nd to budge. They could very well bid at the foreclosure to protect their interest in the property. If you can paint a picture that selling to you at "X" price would make more sense then bidding at the courthouse then perhaps you might have a shot. Otherwise, it might not be worth pursuing.
Thanks for the quick response jorge121,
The "as is" value is well below the FMV..$190 is the ARV/FMV. There is a $40k spread between the "as is" value and the ARV...the payoff bal. is $160k, so the "as is" value is around $150k because of the repairs needed.
That's why I'm wondering if I can Short Sale the 2nd...
Help!
Clif
You can attempt a short sale with the 2nd or ask the 2nd if they'd be willing to sell the note at a discount. You can buy the note from them for say half the price. Then all you have to worry about is paying off the 1st. If you can't buy the note, then short sale with lots of low comps and estimates from companies showing the extent of the repairs. You never know until you ask!
Tanya
Hey Tanya,
Just finishing thanking you for the Sub-To articles on another post.....I'm going to see what the 2nd will propose, my aim IS 50% off.
Thanks a 100 X, cause I know I'll be doing it again soon...
Clif
When you post a scenario seeking advice, the responses you get are only as good as the information you post.
Semantics (the meaning of words) play a critical role in this process.
For example, fair market value (FMV) means the market value of real estate TODAY, in it's present condition.
It doesn't mean what it may be worth tomorrow (with repairs) , or what it had been worth yesterday.
Hey SSP,
When I mentioned the FMV, I was speadking of the areas value or the comps .
Clif
Were you to mention to the foreclosing mortgagee (in your Proposal, or while talking on the phone) that you thought the property's FMV was $190,000, they would immediately reject your Proposal.
"and the FMV is $190k"
This is not meant as a criticism, but in an effort to help you become both professional and successful. Short Sale negotiation is all about communication and the transfer of information.
Perhaps more accurately phrased would have been, "similar homes in good condition have recently sold in the neighborhood for $190,000"
It's good to get into the habit of saying exactly what you mean.
SSP