Question for Ed - Posted by Linda

Posted by Ed Garcia on January 14, 2001 at 11:27:34:


You don’t give us a breakdown of each mortgage. You also don’t give us the amount of the tax liens or mechanics liens for the new roof. You state that you are carrying a large 2nd. That could mean that the lender holding the first mortgage is sitting in a good equity position, and has no need to discount. If the first should foreclose, it would wipe out your second, as well as the mechanics liens. In order for the lender to do a short sale, they have to be convinced that they can’t retail the house and salvage their position.

You also tell us that the lady who purchased your home is paying on the first mortgage, and has put their foreclosure on hold. Once again, not only do they have no need to short sale, they can’t foreclose, unless the lady gets delinquent again.

Linda, speaking of foreclosure. That’s what you better do before it’s too late. Why wait for the lady to get behind in the first, and then you’ll have to cure the first. Foreclose now, forcing her either to pay you or surrender the house to you before she gets to far behind on the first.

Ed Garcia

Question for Ed - Posted by Linda

Posted by Linda on January 13, 2001 at 23:12:47:

Last year my ex-husband and I sold our house appraised at $370,000 to a buyer. She was a mortgage broker and had a tough time getting a mortgage. We ended up holding a very large 2nd mortgage. She now has not paid in several months and was threatened with foreclosure from the 1st lien holder(bank). She paid them enough to put that on hold but has not been paying us. She has several other liens including a tax lien for property tax and mechanics lien for a new roof. Is there an investor that would buy get a contract on the house and be able to go in and discount the mortgages including ours? The property is still worth from $370,000 to $400,000. The liens add up to about $350,000 not discounted. Do you think there is an investor that could close that deal and make a profit using a short sale? We would be happy to get half the money owed to us on the 2nd lien. Any ideas would be helpful. Thanks.