Heres A Few Questions
I have a couple quick questions for the Foreclosure experts.
First, how does the payoff to the lenders work if the house goes to auction. Does the first mortgage holder get just the principle balance payed before the sencond gets their money, or do they get principle + interest / fees / court costs and then whats over goes to the second?
Secondly, after the lis pendens has been filed, if the owner files for bankrupcy, how much time does that tipically hold up the foreclosure proceedings? Will the lender be more willing to short if there is an understanding that if they do not the owner will file BK?
Thanks to any who reply.
Brian
The first gets all of their fees and costs on top of the loan balance.
A lender will always prefer to avoid bankruptcy. Bankruptcy delays vary depending on the bankruptcy court dockets. A lender has to note a motion for relief from stay. The court almost always grants these motion, but then the lender has to re-publish the sale. In the part of the Country I am in Bankruptcy delays foreclosure an average of about four months.
Thanks for the info John
Im looking at a house
FMV: 118k
1st Mortgage: 92k principle but 103 payoff
2nd Mortgage: 23k balance
House is only 2 years old and needs no repairs. If the first gets their full payoff first than the second should discount quite a bit I should think. Does this sound right?
Brian
hgtwwihh,
You will have to do a short sale on both mortgages to make this deal make sense. It is true that the 2nd mortgage holder will be very modivated to settle as they realize that the liklihood of them getting much is slim to none.
Even if you can get that down to $1000 or such, the first mortgage is too high to make this a deal. You can likely get them to settle around 80-85%. GOOD LUCK
Thanks Myfrogger
Thats what I was thinking. The first would have to be shorted also.
80-85% of the payoff amount (103k) or the FMV (118k)??
Thanks for all your help!!!!!
Brian
Every Loss Mit rep has heard "my client is thinking of filing bankruptcy" thousands of time. A rep from Chase started laughing the last time I used that line.
Brenda
Quote:
On 2004-08-26 11:46, myfrogger wrote:
hgtwwihh,
You can likely get them to settle around 80-85%.
Is that 80-85% of FMV or the payoff of the first mortgage??
Thanks Brian
it should be 80-85% of the B.P.O. or 60-65% of the AS IS value or F.M.V. you want to get the second down as much as possible then use these ratios on the first. hope this helps. JEB.
Zin wrote, " it should be 80-85% of the B.P.O. or 60-65% of the AS IS value or F.M.V."
The BPO (brokers price opinion), the As-Is Value, and the FMV (fair market value) should be pretty close to the same number....
If the BPO is notated, "most likely sales price if the subject was in an as-repaired condition'... that's something else.
The "Fair Market Value" is just that. What a property should sell for in it's as-is condition... However, if the appraisal was notated to suggest a sales price if the property were repaired.... and in that case, the repairs w/costs should be listed... than that, again, is something else.