Any Way To Deal On This One?
We are working on a short sale deal with the second mortgage that was supposed to be sold at auction today. We were able to get the sale stopped by paying a portion of the past due with the first mortgage. Is it possible for us to still work a short sale with the second since the sense of urgency is diminished? At the sale they would not have gotten anything. Would they still be interested? Or should we try to purchase the 2nd from them at discount? How should we try to negotiate with this? Any advice is greatly appreciated.
Thanks In Advance
God Bless
Also, I forgot to mention that the 2nd mortgage has already written the loan off. If that makes a difference.
Hi MCRO2,
If the 2nd does not want to work with you, why dont you just buy the property at the auction. Chance are strong that the 2nd in this case wont bid and their interest will be terminated.
What are the numbers on the property, and How much did you offer the 2nd?
BAMZ
Hi BAMZ,
Thank you for your response.
The sale that was supposed to happen today was stopped, so we are looking for options to explore during this period as opposed to letting it go back into foreclosure.
The numbers are pretty good:
(Approximates)
1st $179,000
2nd $ 56,000
3rd Was a private loan that we already took care of.
It is a large home that is in decent to good shape, but could use some work about 60-70K.
With work would be worth about $330-340,000. This past Monday before the sale date, we offered them (2nd) about $2,500 because they had aleady written the loan off and actually show a zero balance, and they could lose "everything" (their position) if it went to sale. So we tried until the last hour to get it done.
We also are interested if the 2nd would sell there position at a discount (purchase their note). So, any suggestions?
Thanks In Advance & God Bless.
Hi MCRO2,
If the 2nd has already written of the $56,000, the loan will be turned from the Loss Mitigation Department to the Recovery Department. Even though they have written this off, they have not necessarily given up on it. Some banks will give you a better SS because of it, and other banks will be more interested in selling the note at a discount to a collection company or an attorney firm.
Now that you have another opportunity, offer the 2nd 10% of the balance and tell them that the number is firm (even if it is not). Even if you went up to 15%, you are still getting a great buy!
Best of Success!
BAMZ
Thanks BAMZ for the info.
What do you guys think about me calling the 2nd mortgage and telling them that the sale was stopped? Do you think they will still be receptive? Should I just focus on the fact that it is a non performing asset, that they can rid themselves of and not go through all the trouble of trying to do anything else with it? I'm trying to get an idea of what my angle would be to justify why they should do it now.
FYI--They had no correspondence with the homeowner, no statements sent or phone calls since they wrote it off 6 months ago. It is shown as a "full settlement on foreclosure" on the account back in June even though they never foreclosed on it.
Any thoughts...anyone?
Thanks As Always and God Bess.
Do not even deal with the 2nd. Get a hard money loan and buy the first mortgage and also have enoughtfor the small fix up of $60 grand. That seems like a big fix up to me. Then hire a friend or attorney if you need to to foreclose on the property.
Good LUCK and HAPPY HOLIDAYS
Hope this helps some
Ted Jr