Do any of you ever just buy the 2nd at a discount and then pay off the shorted first? I have with much success. I have a GMAC 2nd in AZ going to sale next thursday that they are being stinky on. With the AZ market the way it is the other lenders are easy. Any tips?
Also, some of the investors are having higher incidences of harder double closings. We don’t usually have a hard time (use a trust in the middle) but just want to stay 2 steps ahead and see what other investors are doing across the country to flip their short sales. Sometimes we’ve used hard money to close the initial purchase with if they are not a cash buyer, but sometimes it’s being retailed. Any input? TIA
Well guess what? My 1k offer was flatley rejected. So I called back and asked to speak to the person who made that decision. After a little convincing I was piped through to another who again told me my offer was not deemed acceptable. Feeling like the conversation was going nowhere I asked “how much do you want for the loan?” This seemed to throw him off and he said “let me call you back” After 20 minutes I get a call back saying that they will accept 2k for their 48k position. The cow in me wants to counter with $1.5k but that maybe too gluttonous. Should I?
I’m a little excited as this hopefully will be my first short sale + sub-2 deal. It is good to see that one really can get some meaty 2nd positions loans for 1-2k. This home needs absolutely no work other than a good cleaning. I will write back soon with more details as I come closer to closing this transaction.
Way to go! Perseverance pays off in this business. I would take their offer now while it is still on the table and not look back. You got them to accept a 96% discount on their principal, why mess around with trying to get another $500.
One thought… from how you posted, it sounds like it is a possibility that they are selling you the note for $2k, rather than approving a short pay-off at $2k. Either way, the end result for you is about the same (getting a great deal), however there will be subtle differences in logistics, as well as different or delayed tax treatment to the home-owner.
Regardless… good going and get that thing locked down before they change their minds and withdraw the offer.
That’s something I never considered. Can you elaborate on the differences and/or ramifications for the purchaser? If I bought the loan the lender could not file a deficiency judgement, correct? I have been shopping for a lawyer so now I will put that task into high gear. Thanks for the heads up.
Ok I just found out that I am buying the note. I guess that means I will be the new lender. My goal for this property was to short the 2nd and pick up the 1st sub-2. I gotta get a lawyer.