Hi fellow investers
Ho owes $177k on 1st , and $44k on 2nd.and 7k to sears.
option one holds both notes.
$20k needed to bring property to fmv.
FMV is $200k and droping every month(seems like every week)
Foreclosure just started on the first mortgage.
What amount of money should be offered to 1st, 2nd, and sears
or 0 out 2nd and give sears $500 and start at $130k on first
Thanks so much for all the wonderfull feed back
jason
I am in the process of doing a short sale with Option ONe. Have them send out a BPO to do an interior apprasial.
The value that they get back from the BPO, they will want 90% of that.
So, if your FMV is correct, Option One is going to ask for 180k.
If you add the liens, and repairs your investment is $241k, 41k over FMV.
thanks blueboxer
I fail to see the DEAL
I havent done a SS where the first and second are the same.
But I would think that they look at the liens as a whole during the short sale process. But I am not sure.
from what I understand from all the post’s, its better for both mortgages to be in one bank. If this is so, how do you treat the mortgages, as a hole or on their own.
Can I expect the 2nd to go away or will option one whant $1000.
or so. and if they take a less’er amount for the 2nd will they still talk about the 1st
Find distressed comps. Drive down that BPO. If the ARV is $200k, and there are $20k in repairs, the BPO should be way less than $180k if you do your part. This only makes sense… who in their right mind would buy a house for $180k, put $20k in it, only to come out with a house worth $20k if they could buy the same house for $200k today and not risk the $20k repairs (cost over-runs, etc.).
Whether you can make the second mortgage go away depends on what you are able to dig up in distressed comps. Again, this is part of driving down the BPO.
There are some great articles on this site on working the BPO. Check’em out.