Is This Possible?
1st and 2nd with countrywide. Will lender look at allowing only the 2nd to be shorted? I would like to attempt to short the 2nd, and take over the first. Has anyone tried this before with success or know if this is possible since same lender?
Sure you can do it. Chances are they are not even the same lender. Countrywide is just servicing both. Countrywide services more than 10 times as many loans as they fund in any given quarter.
How much is the property worth? If the 2nd thinks it is worth 380K, then they will end up with 100K, not nothing. They get all the overage after the first is paid. And they may feel the owner has assets or future income. The second can go after that to cover losses, so they OFTEN get paid eventually through the courts. They may also have insurance to cover them partially. They may be clueless. It is hard to know...but they have alot more options than just losing everything.
Remember, historically most loans in FC eventually get made current so they are leaning on that fact and playing the odds even if it is less likely in this changed market.