Need some help with Short Sale! - Posted by Happy Investor
Posted by Happy Investor on June 08, 2007 at 18:37:53:
I am not new to this newsgroup but I have not been here in quite sometime. I have been so busy with so many things other than real estate investing. I am excited to be back. This is the Greatest Forum on the Web!
I have some questions that I hope some of you could help me with. In the last couple of days since I started up the marketing machine again I have had a couple of calls that may be possible short sale candidates. I need some advice from you experts please if these are deals and what the chances might be in these situations of obtaining a short sale.
Total Loan Amounts: $304K
1st Mortgage: $204k
2nd Mortgage: $100k (HELOC)
5 Months behind on Payments of $2000 a month
Needs cosmetic fix up of Approx: $8k to $10k
Couple is going through a Divorce. Property has been Vacant about 4 months.
Auction Scheduled for 8/31/07
If I use the MAO offer. I need to get this property for about $160K ($240K x 70% - $8k = 160K) What about the 2nd Mortgage do I ask them to take the biggest hit and ask the first to take the rest to make it to a possible $160k Purchase Price? Will a 2nd mortgage take such a reduction?
Total Loan Amounts: $222k
1st Mortgage: $180K
2nd Mortgage: $42K
7 Months behind on Payments of $1600 a month. Property is Vacant.
Again MAO ($175k x 70% - 10k = $112k) This would completely wipe out the 2nd and half of the first mortgage.
Auction Scheduled for 8/1/07
In Both Cases it is the 1st Mortgage Holder who started the Foreclosure Process.
Thank you for any advice! Are these deals worth pursuing? Are they deals at all?
Thank you in advance for any responses! I am very excited to be investing again.