SS Proposal-Please Comment
FMV $84,000 townhouse
1st $76,000
2nd $16,000
Repairs $5,000
Proposal is to offer 1st $55,000 & 2nd $5,000. Repair & rent $800-850.
Please comment on offers for 1st & 2nd(too high/too low)???
If the subject property is worth $76,000 why would the first mortgagee agree to accept that much less than it's due?
Your play is with the second.
[addsig]
My proposal was a result of FMV - repairs - estimated cost of mortgage company to resell x 80%.
A you suggesting paying the 1st in full and maybe a couple grand to the 2nd?
What are some resonable offers in this scenario?
Thanks for any replies.
Regards,
John
Unless you can devise a compelling argument in support of the first accepting a discount... I'd think that they'll deman payment in full.... or pretty close to that amount. The key will be to convince the junior that their interest could be 100% extinguished if the property were to go to a forced, foreclosure sale.
Thanks. I have spoken to the junior and they are very interested in working this out(the junior was written AFTER the property was in foreclosure). I need to double check the senior payoff, would offering the junior $2K be within reason???
Revised 1st payoff is actually $81.5K