Hi y’all,
Has anyone been doing these? Also, if there are two mortgages, are second lenders being very flexible with the amount they will take since they get wiped out when it goes to auction? So for instance, if I do a sub2, are they willing to take 10 cents on the dollar or since it will not go to foreclosure, will they not do anything?
thanks,
AA
Hi Aubrey,
With the second you’re referring to, it would be considered a short sale, rather than a subject to. I’m assuming your goal is to be able to take over the first and get rid of the second (or as much as possible).
In general, the closer the property gets to foreclosure, the more flexible the second lienholder will be. You may need to educate them about what is going on (make sure you have the seller complete an authorization to release information).
If you can get them to accept ten cents on the dollar, you’d have to pay that amount and get a full release of lien from the lender. Then you can take over the first subject to existing financing.
If the seller is current with payments to the second lienholder, it is unlikely they’ll be flexible.
I hope that helps!
Have a great day!!
Stacy
Hi Aubrey,
In my experience, most 2nd mortgage holders will discount…some won’t. Sometimes it seems like theirs no logic for it, either. 10 cents on the dollar happens occasionally but probably less often than not. Sounds good and sells courses, but happens less often than the Guru’s say. Best wishes!!
Thanks y’all. Great info. I’m sure if the borrower is late on the large mortgage, he will be late on the 2nd as well. I’ll post my first success story at some point by the end of the year:)
Have a great day
AA
Right on Aubrey! We’ll be ready to celebrate with you!!
Stacy