Posted by Brian_wa on August 22, 2007 at 16:27:32:
I’m hoping that this big institution lender is so busy to track all the auctions, especially when they think that I may have been able to stop the auction plan pay them off at closing somehow…
Brian
short sale and auction… can this be done? - Posted by Brian_wa
Posted by Brian_wa on August 21, 2007 at 22:20:58:
Suppose the lender on the 2nd mortgage agreed to a short sale of 5k on a 60k loan. There are no other loans after the 2nd. Let’s say the 1st is foreclosing and the loan balance on the 1st is 200k and they’re not willing to negotiate at all. Let’s say the market is really unstable right now and I don’t want to commit to paying the 2nd this 5k plus 200k for the 1st.
The house then goes to auction and someone bids up to 220k for this house. At this point, is it possible to spend 5k to pay off the 2nd (since they don’t know about the outcome of the auction) and then work with the owner to claim the surplus 20k? Is this even remotely possible?
Brian
Re: short sale and auction… can this be done? - Posted by MatthewMStefanik
Posted by MatthewMStefanik on August 22, 2007 at 08:16:29:
Well, you wouldn’t want to pay off the second if this were to be your approach. You would want to buy the second and then have the lender assign the mortgage to you. Then as the second lien holder you could apply for the overage with the court. However, being that it is an unstable market like you said, do you really think anyone will actually bid this house up to $220k? If $220k is a good deal, then why would $205k be a problem for you?
Best Wishes,
Matthew M. Stefanik
Re: short sale and auction… can this be done? - Posted by Brian_wa
Posted by Brian_wa on August 22, 2007 at 09:04:23:
220k may be a good deal for a novice investor with cash in hand. It’s not for me and I don’t want to take a chance in this market. I’m sure you ran across investors all the time who bought houses at that you wouldn’t even spit at…
The 2nd is not willing to sell the note.
Let’s just say that this auction occured already and the final bid was indeed 220k.
Brian
Re: short sale and auction… can this be done? - Posted by Kristine-CA
Posted by Kristine-CA on August 22, 2007 at 09:29:24:
My question is what information do you have that makes you think the
2nd isn’t fully informed of the sale of the first and the amount? Is it a
private lender? One call to the trustee on the day of the sale and the
holder of the 2nd knows what the property sold for at trustee’s sale.
Kristine