Posted by Joe on March 07, 2002 at 15:06:31:
Sorry, but I have no idea what you’re trying to say.
SHORT SALE QUESTION - Posted by J
Posted by J on March 07, 2002 at 13:25:26:
I have a deal in progress and need some help from you “veterans” at this business. I hope these questions don’t seem silly. The house has a first and a second on it. I am close to agreement on a short sale with a lender on the first. Before I get too far ahead of myself let me say this. The second on the property is very small (and a private loan) that I would not mind dealing with. What happens if me and the lender agree to a price on the short sale of the first? Do I then need to deal with the second…I mean I Know I will have to obviously deal with the second. But how do I?
Thanks
Re: SHORT SALE QUESTION - Posted by steve b.
Posted by steve b. on March 07, 2002 at 14:17:24:
offer to buy the second at a discount.the person holding the second more then likly carried it just to sell the property to the person your trying to buy the property from.it sounds like the seller of the propert is in pre-foreclosure, thats why your asking first lien holder for the short pay (short sale).if, i’am right about the pre-foreclosure situation ,then explain to the second lien holder that if you do not come to a solution that his lien will die in the foreclosure,that he would be better selling it to you at a discount. start at 50% of face value of note and go from there.
Re: SHORT SALE QUESTION - Posted by j
Posted by j on March 07, 2002 at 16:18:02:
you’re right about the second, it’s owned by a previous owner, but my problem is that the 4closure is scheduled in about 11 days. The 1st will not assign the note to me, they will only short sell which, in short selling the first, the 2nd would no longer be in jeopardy of being wiped out, is that right. I’m guessing that you are saying to negotiate with them as if the property is going to 4-close, right, hoping that they do not find out about the short sale until we have satisfied the 2nd. But that could be dangerous if for some reason the negotiations on the short sale fall through (the bank wants too much) correct. Because then I lose the money that I spent satifyint the second
Re: SHORT SALE QUESTION - Posted by Joe
Posted by Joe on March 07, 2002 at 14:33:49:
I agree, but I’d start a lot lower than 50%. Start at 10%.
Re: SHORT SALE QUESTION - Posted by Joel
Posted by Joel on March 07, 2002 at 14:52:08:
well you are right, however you have to sense who the private mortgage holder is, if he is one with muscle’s then you might start with 50%, because he might take your position and pay of the first bank loan for a short sale. in other words he make you a lot of trouble if you start triggering the trigger