Posted by pazzo on May 03, 2007 at 24:41:17:
I’m not buying the property until I got the short sale accepted with the bank.this is not my first short sale I had gotten discounts with the bank up to 60% ON THE FIRST Mortgages
I had discount seconds in the pass(when the first start the foreclosure process first) from 28,000 to $500 they have accepted my offer because they risk to be wipe out if the first foreclose an not collect enough money to pay off the second.
My question was if is better to wait until the first mortgage start the foreclosure process(that is going to be soon)
Thank you
Short sale the second? - Posted by pazzo
Posted by pazzo on May 02, 2007 at 07:54:21:
Hi
Today I found a house that have two mortgages
1mortgage:115,000
2mortgage:28,000
Second is foreclosing.First mortgage:he has not receive yet the notice of default (although is three month behind}Should I wait until the first start the foreclosure?or should I try to discount the second?
Thank you
Re: Short sale the second? - Posted by IB (NJ)
Posted by IB (NJ) on May 02, 2007 at 08:42:05:
What do the numbers look like?
ARV?
FMV?
Repairs?
Ib
Re: Short sale the second? - Posted by pazzo
Posted by pazzo on May 02, 2007 at 09:15:13:
ARV:$155,000-160,000
repairs:$10,000
Re: Short sale the second? - Posted by IB (NJ)
Posted by IB (NJ) on May 02, 2007 at 18:09:33:
Looks too skinny but depends on the balance of the 1st. Assuming it’s still $115k or greater, you’re paying too much even if the 2nd decided to take $100 and walk.
Your forumal should be 70% x ARV- Repairs = Maximm profit you pay for the property.
Using the conservative side of the ARV you posted gives you $98.5k as the MAX you should pay.
Unless you’re flipping this retail via double close and contract assignment. If that’s the case, make sure your buyer knows that you are only buying subject to your ability to flip the property to an end buyer. If not, walk…
Ib