Foreclosure Is In Process Need To Shortsale With Countryside FAST!!
I own a 25,000 dollar 2nd mortgage on a property which is being foreclosed upon in a judicial state. The P.B. is 154,000. The fees and back interest etc tally up to about 25,000. Therefore they are asking for 179,000. This guy has been injured, bankrupt the whole 9 yards. The property with a few thousand dollars can probably go for 230k. When working with countrywide to get this thing through does my 2nd mortgage give me any extra clout? Does anybody have any hints or tips? This is my first one Thanks
You say the total owed with fees and interest is 179,000? Does this include your 25,000 2nd?
If you are planning on short selling this, why not be the buyer? Let me clarify; if you hold the 2nd mortgage but the 1st is going to foreclose, you stand a good chance of being wiped out. So, you can either market the property to try and find a buyer that will cash you and the 1st out, which means that you will have to sell it at retail price (if you are asking the 1st to accept a discount they will want to see a large discount of the 2nd before they will accept) so as to get full value for your note,
OR,
You can put the house under contract with you being the buyer, offer the 1st a short payoff, show that the 2nd (you) are accepting a short payoff (of $2,000 or something small like that) and then, if the 1st accepts the offer, you can market the house well under full retail value to get a quick sale and "wholesale" or "flip" it to a new buyer. This is the same technique that wholesaler's use to flip junkers to rehabbers.
For example, you say the payoff is 179,000 and with a little work the house would sell for 230,000 (I am just going to assume the house's "as is" condition is worth less). Without all the 1st mortgage details I can't be sure these numbers would work but I would offer the 1st around 140,000 as a payoff and show that you are going to accept $2,000(?) as payoff. So the contract price maybe around the 142,000-145,000 range. Then, after the 1st accepts, market the property for sale at around 200,000--a substansial discount from full retail value. At that price, you ought to be able to find a buyer fairly quickly. Now you have a sales contract and you can set up a "simultaneous" or a "double" closing and collect your money. You'd get your 2,000 as short payoff when you buy they property and, an hour or so later when you close on the sale, you get to keep the difference between what you bought it for and what you sold it for.
Just an approach you may not have tried...
I attempted a SS with CW a couple of months ago. Of all the lenders I've dealt with, their requred documentation is the most cumbersome. That being said, if you play along they will order the BPO and negotiate to 80%.
Thanks for the replies! I thought about finding a buy, but realized that with our time constraints that was just unreasonable. I'm working on putting together that short sale package right now. If the personin foreclosure submitted the Deed of Trust in lieu of the foreclosure, would I then have to work with their REO department and then through their realtor? Or could I just work directly with CW? Thanks for everyone's input!