Ok, I have been reading many of the posts here and I have learned a lot. I normally focus on S2 deals however I came across a lead on a SS opportunity and decided it was time for me to learn.
Here are the specifics:
Homeowner went thru a divorce. The home is in both parties name however the divorce cree states that she owns the home. I am working with her directly.
Homeowner is 2 months behind on 1st and 4 months behind on second.
The properties FMV is around $160k-$165k.
The 1st balance is $128,306 with a negative escrow of $18k!
The 2nd balance is $31,135
Total owed: $178k ($13-$18k above FMV)
The home is only 3 years old, in a fantastic neighborhood, is holding its value, low foreclosures around it and needs no repairs besides basic clean up.
I would like to get the property at no more than 80% FMV - $128k-$132k
The 1st has sent a SS packet to her and we are beggining to fill it out.
My questions are:
1 - What would your aproach be? Run!?! :biggrin
2 - Does the divorce cree allow her the ability to move forward with a SS without his involvment?
3 - When there is a negative escrow, does that change the willingness, ability to talk about a SS with the Loss Mitigator?
4 - In a typical scenario, what does the 2nd get with that large of a balance? I have seen some posts for $1k to $3k. Is that real!?
All comments are welcome!
I am sure I will post more questions in the coming days so I really appreciate your feedback.
what are the banks if one is hsbc your in for trouble.
its my belief that the second doesnt have to settle with you for any amount other than full payoff your angle is if the bank forcloses they get nothing so use this leverage as you can. keep in mind you pay all closing costs back taxes ect… I would start at 90k to get the ball rolling keeping in mind you have to cut a deal with the second. I am sure if anything in this is questionable it will be corrected :bobble
You don’t say if the house has been listed. Given the description I’d be surprised if it didn’t sell outright. I’m not sure as to ownership. If both names are on deed, both must agree to SS. If the divorce decree states one spouse has title, it should be recorded as such or you may have problems. You need to deal with second. If foreclosure is close, they’ll deal as they will get $0 at foreclosure. Also, if the owner is insolvent there won’t be any tax consequence. If the owner is not insolvent there is a tax consideration. I might be wrong as I think congress has put a kybosh on tax for a while as the housing mess gets sorted out. You are responsible for all costs that you mention. $85-90K is a good starting point for negotiation.
The 1st is Home Eq Servicing and 2nd is Carrington Mortgage Services. I am starting at $110k to see how they want to play. The worst they can say is no.
The house has not been listed. I agree if it were on the market for the loan balance it would probably move quickly. But the bank seems to be very interested in a SS so I am happy to try and oblige! Thanks for the feedback!