<<Make sure you understand that even if you get them to continue to pay on second...if you were to get cashed out by new financing, the proceeds from that sale will go to the first lender, then the second lender, and you may have to make up the difference if anything is still owed.
A second option would be to short the second lender and pay them off. >>
Rfulky,
What neb meant by that is let's take a hypethetical situation: Say you bought this property that has a first of 150k and a second of 10k in the event that the property goes to foreclosure for example the first loan has to be paid first and typically the second mortgage gets very little paid back because they are in second position. What you can do is negotiate the balance of the second mortgage alot of the times for pennies on the dollar. It's in their best interest to do that because they run a possibility of getting nothing if the house is foreclosed and they get their money in one lump sum rather than payments over time. Atleast that is what I understand. Another thing you can do if possible negotiate that this second be attached as a lien on the seller and not the property, depending on the loan and the bank you might be able to. Hopefully I didn't make it more confusing for you.
<<Make sure you understand that even if you get them to continue to pay on second...if you were to get cashed out by new financing, the proceeds from that sale will go to the first lender, then the second lender, and you may have to make up the difference if anything is still owed.
A second option would be to short the second lender and pay them off. >>
Rfulky,
What neb meant by that is let's take a hypethetical situation: Say you bought this property that has a first of 150k and a second of 10k in the event that the property goes to foreclosure for example the first loan has to be paid first and typically the second mortgage gets very little paid back because they are in second position. What you can do is negotiate the balance of the second mortgage alot of the times for pennies on the dollar. It's in their best interest to do that because they run a possibility of getting nothing if the house is foreclosed and they get their money in one lump sum rather than payments over time. Atleast that is what I understand. Another thing you can do if possible negotiate that this second be attached as a lien on the seller and not the property, depending on the loan and the bank you might be able to. Hopefully I didn't make it more confusing for you.
aimee
i appreciate your help!
Thanks