Shortsale/What to offer 2nd - Posted by astalt

Real Estate Investing
1

Posted by astalt(MI) on August 06, 2003 at 12:44:20:

I’ve thought of that but have never done it. I have the money to do so but not the knowledge. How would i research it?

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Shortsale/What to offer 2nd - Posted by astalt

Posted by astalt on August 05, 2003 at 22:26:44:

I am currently working on a shortsale situation with the following liens and amounts:

1st–7500 (Foreclosing on property)
2nd-- 43,000
3rd-- 8500
4th-- 6700
IRS lien-- 13,000
State Tax Lien-- 11,000

ARV of house–> 100k

How much would you offer the 2nd for a shortsale?

Also, the 1st would like a valid Purchase Agreement to cancel the sale. What amount would you put in the contract as the sales price?

Thanks

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Waste of time - Posted by Ben (OH)

Posted by Ben (OH) on August 07, 2003 at 17:27:13:

For my two cents you have plenty of negotiating to get the job done. what state are you in? you might have more luck buying the 1st position and foreclosing–but it depends on the state you are in.

I do plenty of short pays. They pay very well, but don’t kill yourself on this one, there are plenty to go around.

Ben

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Re: Shortsale/What to offer 2nd - Posted by TheShortSalePro

Posted by TheShortSalePro on August 06, 2003 at 06:01:27:

If the total payoff for the first mortgage loan is only seven thousand, five hundred dollars, don’t expect much of a discount from the second. They’ll simply ask that their loan be included in the final judgment and bid up at the sale, or they’ll payoff the first, and continue their own foreclosure… being made whole in the process. The tax liens will most probably survive the forced, public sale.

With regard to a short sale proposal, it doesn’t much matter at this point (to the mortgagee) what the after repaired value might be… what’s it worth in it’s as-is condition?

Much depends upon your state, and the foreclosure laws and customs of your state.

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Re: Waste of time - Posted by astalt(MI)

Posted by astalt(MI) on August 07, 2003 at 19:49:51:

Ben-

I am in Michigan.

Are you saying this whole deal is a waste of time?

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Re: Shortsale/What to offer 2nd - Posted by Tom (MI)

Posted by Tom (MI) on August 07, 2003 at 09:16:13:

We have a redemption period in Michigan. I have yet to see anyone bid at the auctions because if this. The second may discount but they may also protect their interests by buying the first. Best thing to do is to give the second a call and see what they are doing. You can always buy the first and foreclosure yourself.

Tom

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Re: Shortsale/What to offer 2nd - Posted by astalt(MI)

Posted by astalt(MI) on August 06, 2003 at 12:35:11:

Sorry, the as-is value is 100k right now. It really only needs paint and carpet.

I am in Michigan.

Would you try offering 20k to the second?

A

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Re: Shortsale/What to offer 2nd - Posted by rm

Posted by rm on August 09, 2003 at 11:41:40:

Is the house vacant or occupied?

Have you spoken to the seller?

What is their plan?

I don’t know why you’d talk to the second.

Or the third.

Or the fourth.

I don’t even know why you’d want to cancel the sale.

If you’ve got cash, check the title and just show up to the auction with 55-60k in certified funds.

And buy it for as little as possible.

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Re: Shortsale/What to offer 2nd - Posted by TheShortSalePro

Posted by TheShortSalePro on August 06, 2003 at 12:41:39:

You can certainly try, but I doubt they would consider accepting that amount when they can be made whole…

Why not buy the first, and the second via an assignment? Then continue the foreclosure.