Posted by BankRobber on February 27, 1999 at 10:52:30:
let sleeping dogs lie.
Negotiating With 2nd TD Holder, Foreclosure - Posted by Scott Bullen
Posted by Scott Bullen on February 27, 1999 at 09:40:21:
A property was deeded to me with the 1st in foreclosure.
Fair Market Value= 120k
Auction price for 1st was 99k
2nd to First Plus Financial was wiped out for 26k.
No one but the first bid at auction.
2nd has redemption rights for 85 days after the sale here in Colorado. I placed a 3rd on the property before the sale to my marketing corporation, and I have 5 days after 2nd’s redemption period ends to redeem myself, as a result of redemption rights granted to the 3rd, though I would have to pay 99k or more cash to clear it up.
I am considering approaching 1st Plus Financial, and asking them to option their redemption rights to me with a strike price of $2,500, in order to eliminate this only remaining party with redemption rights, so I can sell right now. I don’t want to wait out the redemption period. Also, if I can sell now, I won’t have to raise $100,000 for my own redemption.
I fear, however, that if I do this that they will get wind that I want to redeem myself, and that they may redeem themselves, raising the price of my own redemption.
My question is, am I better off to wait out the redemption period, or to try negotiating with 1st Plus Financial?
Re: Negotiating With 2nd TD Holder, Foreclosure - Posted by Irwin
Posted by Irwin on February 28, 1999 at 06:20:00:
If you do that, you will have over $100k a $120k property. Seems like a pretty thin deal unless buyers are swarming all over the place. In order to create more equity, I’d be inclined to offer the first $85k for their position and leave the 2nd alone. They’re not likely to put up $99k to try to salvage $26k.