Help with Forclosure or pre forclosure with first and second mortgages

Foreclosures, Short Sales, Tax Foreclosures
1

Hi Question for all you gurus out there I found a home that has a first and second mortgage on it that the owners are not paying the mortgage payments on for about four months now and have no intentions on doing so . They just want to get let the house go back to the bank and then they might file bankruptcy, they do not live in the house but are renting it out.

Now the first mtg is $600 per month and the second is $600 per month but the renters are only paying $660 per month.

How would someone structure a deal with these people that would get them out of owning the house and allow me to make some money from this. The home is in florida and i dont have the credit to buy the home.

Another question on the same house is if I made up the four payments to the first mortgage company can the second lein holder force a sale of the home anyways or would they normally just wait a while?

Thanks for any answers

2

Not the best deal to cut your teeth on. Two loans, both in arrears, and there is much that can go wrong.
In a nutshell, do not bring that first loan current. Because if you do and the second remains unpaid, the lender of that second will begin foreclosure proceedings. If you want to pursue this deal your best option would be to negoitate a short sale with the second lender. Get them to take a big discount. That’s where you’ll get your equity. Of course, much depends upon all of the numbers in the deal.

PS: there are easier ways to break into real estate investing than foreclosures and short sales. (My two cents. . .)