Negotiating Short On 1st When You Own The Second.
I have a colleague that came to me yesterday and told me that he has bought the second mortgage when it foreclosed, and now is negotiating with the bank that has the first for the property. They are close to reaching a deal but the escrow company is saying that there is a problem because he is already listed as the owner of the property because he got the dead when he bought the foreclosed second, and in order for them to do the sale the people that have the 1st that is going to be done short need to be the sellers.
What do you recommended that he do?
Sell the 2nd to a related entity and go from there.
[addsig]
Call the title company you work with and order a Prelim or at the very least order a copy of all recorded deeds.
The deeds will lead you to the right person...
Good Luck[ Edited by MichaelQuarles on Date 12/25/2007 ]
Thanks a lot guys! That gives me a good starting point. Any other info you can think of that would be helpful, I would appreciate. Thanks again,
Rick
Thanks again, Chris. I will investigate the short sales forum.
Rick
Where are they recorded? I had the owners name on the computer screen,(which was an LP), and all the entries of the LP on the list, were the mortgages. Thanks for the help,
Rick
Perform a complete Chain Title report on the subject property. This will list all Liens. Check out the property
with the local city for code enforcement issues. The Bank will only discuss the property with you if you have the L P authorization. Call your local title office and ask the status of the property ,(REO,Foreclosure) . Sounds like the property might have foundation issues if tenants were ask to move or it might have been sold as an REO and the tenants where evicted/ need more info. prior to offering a purchase contract review the history of the property, Repairs? CMA , What were the rents ? long term tenants or overnighters. what about zoning issues. . What is the city plan for this area. seek tax credit if it is located in redevelopment area.
A lot depends on the value of the house and what she owes. Also, what type of loan and monthly payment. Not knowing specifics,,,,,Your friend might consider selling it to an investor and renting back under a lease option to purchase.
What are the numbers?
I am not a Lawyer and will never offer Legal advice.
If you can provide verification of her income, Proof of
her Medical hardship What is Normal circumstances? Does she have PMI, Need more detail, Special Forbearance agreements allow the PMI Insurer to pay to bring the loan current and / or a % of the arrears , Then negotiate the remianing balance to be added to the rear end of the mortgage . keeping the payment the same. Need more info to help Good Luck
Is I saw that I would assume seller financing.
I agree. Gaining MLS access requires more than just a license, at least in Florida it does. I am a licensed broker in Florida. Once you pass the test, you have post-licensing requirements and costs. You have to be a member of the local board to have MLS access. You have to be a member of the state real estate association PLUS you have to be a member of the National Association of Realtors. And you need to be registered under a broker unless you become a broker yourself. All of this requires dues be paid.
Not sure if Michigan has all the same requirements but it seems like a lot of expense and effort and no guarantee of good deals to be found.
You need to have access to MLS if you are buying properties so that you know how many comps are currently listed, how long they have been on market, and for what price are they listed. How can you buy anything if you do not know for how much you can sell it?
You could get a realtor to do your comps, but my experience is that realtors are not very good at producing detailed comps. I look at the immediate neighborhood (or subdivision), look at a 1 mile radius, and then look at the entire city. If you have a 2000sf, 3/2/2, built 1960 for 250k and five neighborhoods over a builder is selling a 2500sf, 3/2/2 built 2006 for 200k, you are screwed.
In FL, a realtor can have an unlicensed assistence that is given full access to the MLS.
After careful consideration; i decided long ago to let the agents get their comission. I show them how to put deals together and in return, they let me use their login to the MLS to find deals that suit me.
i get to avoid any conflicts as a licensed agent; and they get to make a little money; and I have full MLS access.
try partnering with an agent and you can be more successful than the comission they earn!
i just became an agent in CT and it cost about 1500 a year to be an agent. ive already sold a couple of my rehabs and made it back several times.
Thanks for all the replies...they were defintely helpful