Help doing Short Sale

Alright so I got a lead from a guy wanting to get out of his house. He has been served the notice of default, and can’t afford to make payments anymore. He owes 196k on a first mortgage, and 75k on a 2nd mortgage. Comps in the area are going for around 320k-350k. He is telling me je just wants to get out and can’t make payments. He doesn’t really even care if he gets foreclosed on he just wants out. So, do we try and shortsale it and offer the 2nd mortgage lender a couple thousand for his mortgage debt? Or what exactly do we do from there?

This is my first deal, first lead, im a newbie. Working as a partner with my dad who is a broker. Need some tips, thanks.

It’s not a short sale, 196+75=271=85% of value.

You might get second to fold, which would give you around 60%, then it’s a deal.

Does it need any work?

BTW, 6 months ago, I was doing 5 short sales a week, now I’m doing none.

The banks won’t foreclose any more because they don’t want the property.

No it doesn’t need any work. Can we go to the 2nd, and say it is being foreclosed on, and make an offer on their lien? Then wholesale it to someone else?

So if the banks won’t foreclose anymore, what are you doing instead?

By the way. The seller just want’s out. He is done trying, just wants out cause he can’t make payments anymore and wants to move. So, to make this profitable, where do i go from here since it is not a short sale? Get the 2nd to accept a settlement and just resell it to someone else for below market value?

Anyone know where I can go with this?

About all you can do is settle the second which will show on his credit as ‘settled deficient’ or words to that effect, and they’ll take out a deficiency judgement against him.

That’ll give you around 60% or 70% so you can make a quick 30K or so.

For the last five years I made three million a year, I’m resting, I can afford it.

What you can do is write a purchase agreement with this guy and get him under contract first. I can provide you a copy of a contract I have used. Then get other require docs needed to do a short sale. I can provide you with a check list and some templates of these docs if you would like. Then hand all that paperwork to my company and we will get you the property at the price you are hoping for from the banks. All of this will cost you NOTHING! We will get paid from the banks and if it doesn’t work. Then we say oh well and move on to the next deal. If you are interested either email me or go to my website and contact us.