Got one on the hook, but...... - Posted by DoubleJ

Posted by DoubleJ on July 18, 2005 at 20:41:21:

Thanks, I have just been reading about that today. I guess I will have to get my short low enough for a HML, and a double close, or another closing withing 30 days. Its going to have to be awful low for those closing costs, eh ?

Got one on the hook, but… - Posted by DoubleJ

Posted by DoubleJ on July 15, 2005 at 08:15:34:

We talked a bit, and he said some of the magic phrases, like I just want to be out of this. He did say he would like to get a couple of hundred blah blah, but mainly just wants it behind him. So point is, I know hes willing to work with me.

He did however say that there are some liens in addition to the mortgage. Of course, he didnt know how many, or the amounts of them, or at least wasnt volunteering that info.

I plan on pulling comps this afternoon and evening on the property, and meeting with him tommorrow to see the inside of the property.

Of course, I will have to pull the title, or pay for a check, and then see what Im dealing with lien wise.

My goal is to assign a contract with enough equity to a rehab guy, or other investor, or someone who can close quickly.

However, Im wondering if they will be turned off by all the liens that need to paid off to get a clean title. I am experienced in debt negotiation, and understand that I should be able to get decent payoffs on the subordinate liens with a looming foreclosure.

But I wonder if I will be able to market this contract efficiently with the current issue.

Im mainly posting this to get peoples thoughts, or past experiences on the situation I have here. I would guess this is pretty elementary stuff for most wholesale guys.

Re: Got one on the hook, but… - Posted by ken

Posted by ken on July 15, 2005 at 17:59:43:

I buy plenty of houses where there is a mortgage and various liens. Sometimes they get paid at closing sometimes i take the lien as part of the deal and try to negotiate it down when i sell. I wouldn’t care about liens as long as my title guy is ok with it. He will write title with an exception on the lien so usually it will only work with your own money or family money usually banks and hard money guys want to see clean title

Re: Got one on the hook, but… - Posted by DoubleJ

Posted by DoubleJ on July 17, 2005 at 22:12:06:

Thanks for your input.

Upon further review of the property of the seller I have on the hook, I see why the deal is still available for me. There is a lot of clean-up, and some potential major rehab work needed (evidence of quite a few termites). Its also not in the best of neighborhoods. I am still trying to get a picture of the next door neighbors pit bull for the bank to incude in my short sale package. LOL

I guess since Im looking to assign this deal (if I get a good enough short accepted) that I might as well talk to the subordinate lien holders and negotiate payoffs for my buyer, and they can decide whether or not they want to pay the juniors at the closing.

Sounds good enough in theory, doesent it?

Re: Got one on the hook, but… - Posted by Natalie-VA

Posted by Natalie-VA on July 18, 2005 at 15:55:26:


I don’t know that you can assign a short sale. At least you won’t be able to show it on the HUD. The lender doing the short won’t like to see someone else making money.