Handling Secondary Mortgages In A SS
I am truly a newbie, w/ very little real estate knowledge, so please be patient w/ me...have been researching SS as we have found a home we'd like to purchase for our personal use that may be a good SS candidate.
Here's my question...When trying to do a SS, I understand that you should try to start negotiations w/ the jr. lienholders and work your way up, but how is it stuctured so that you only actually purchase these secondary mtgs if you can get all of them? Is it a matter of placing a contingency clause to that effect? The house in question has 2 secondary mtgs on it, both held by the same lender.
I've read the old posts, etc, but I have not seen it specifically addressed (well, not as spelled-out as I need it to be!)
Thanks to all of you who share your knowledge and experience; it's been greatly appreciated.
It isn't always necessary to purchase the juniors via assignment... in fact, most people don't have the cash to purchase the liens. They seek to negotiate a discounted payoff... to be paid at closing upon passing of title.
They (the lienholders) issue a short sale approval and a payoff that reflects the negotiated, discounted payoff.
Quote:
On 2004-04-02 17:30, TheShortSalePro wrote:
It isn't always necessary to purchase the juniors via assignment.....They seek to negotiate a discounted payoff... to be paid at closing upon passing of title...
Sorry, I didn't make myself clear there. I wasn't looking to obtain them via assignment, but planned to try to negotiate a SS w/ them also. Thank you for clarifying that they would only be paid upon passing of title--I was unsure of how that worked.
Thanks again!
Contract to purchase to seller is made contingent upon x bank and y bank accepting a short sale. Most 2nds realize (if home has no equity after 1st) that they will get next to nothing at a foreclosure sale, so they should be happy to get something. This has to be evident in the BPO and mortgage numbers. Also, I find it better to deal with all lein holder at same time so one is not ready to do the deal in a week and another is going to take 4wks yet cause they want a BPO etc.
Kelly(WI)