You dn’t say which loan(s) have arrearages. If it’s just the first you need to get the deed from the seller and then try to negotiate a short sale payoff (discount) on the first, just like you’ve done on the second, so that you can sell and make some profit. Be sure to factor in the condition of the property for the quick resale. If it’s not good, then it will need to sell for less. The only hope I see is if both lenders will take less than their notes in orderfor you to do the resale for them. They save time and moiney because they don’t have to go through foreclosure.
The seller needs to either deed to you and step out of the way, or just let it go to foreclosure.
Look at this deal, what would you do - Posted by Scott SC
Posted by Scott SC on November 16, 2000 at 12:01:55:
Hello everyone!
I wan’t to run this deal by you and get some ideas. I sent some post cards out to folkes who were getting ready to be foreclosed upon and I got a very motivated caller.
The house appraises at $103,000, 3br 2 ba 1600 sq ft. Great condition.
He has a first of $73,000
A 2nd of $25,000
and his arrearage is $8500.
I’m trying to figure out a way to get this house without coming out of my pocket with a lot of $$$$$$$$$.
I called the 2nd mortgage holder and they said the least they would take to assign over the 2nd is $12,000.
To bring his mortgage current I would need $8500. That’s $20,500 out of pocket!!! Which I don’t have.
I guess my plan was to buy the 2nd, bring the first current and get him to sign over the deed. But I can’t come out of pocket that much money.
He doesn’t really act like he will help pay anything towards the arrearage. I mean he seems VERY motivated but I don’t think he has the money to help with the arrearage.
There is a deal here, I just don’t know how to formulate it. Any suggestions???
If I left anything out let me know and I will fill you in.