Posted by Jim Locker on December 15, 2000 at 10:41:56:
Let me get this straight. Seller owes $45K on first, and $25K on second, for total debt of $70K on property valued at $65K?
Doesn’t look to me like you can make any money on it at all.
Even if the 2nd mortgage company discounted the paper 50% (and why would they?) you still would be looking at $57.5K debt on a $65K property. By the time you factor in sales costs, there will be very little left and in order to get even that you will have to sell - quickly - at full retail for the property.
This kind of seller was the subject of a post that I made just yesterday here:
Sorry to keep giving references to posts at The Motley Fool, but I have been a regular there for several years, and a lot of these issues have come up there already.