I’m working on a property that needs very little rehab. It is worth $230k, has a 1st of $150k and a 2nd of $70k. The property is going into foreclosure. My plan is to pay off the 1st just prior to auction, and make a deal with the 2nd several days prior to the sale for $7k. My attorney says that many 2nds aren’t aware that an auction is even taking place and since they don’t have time to start their own foreclosure process, they will deal for 10%!
Ist this really the norm or just a fluke?
Thanks,
TB
The second lienholder will deal with you almost all the time… we have had very good success and average about 14% on them.
When the second knows the property is going to foreclosure, offer no more than 5%. If it goes to foreclosure, they get nothing.
Thanks for the input!
TB