How do I structure a SS that has a 1st and a 2nd????

Foreclosures, Short Sales, Tax Foreclosures
1

I’m a RE Agent and decided to put offers on all 58 SS in the MLS (on my 8th one now…) :evil and I faxed over the PA to the other RE Agent representing the seller. I spoke to him and he said there is a 2nd mortgage. I’ve only done one SS and it was a huge success. I have read that I should only offer the 2nd lender like only 1K or 2K? Is this accurate???
Here’s the breakdown.

1st - 260K bal
2nd- 50K bal
TOTAL DEBT = 310K
Value = 300K

Question: Should i give the first what is owed and completely wipe out the 2nd (maybe a G or two?) :banghead Thanks guys, you guys are awesome!

2

From what I have read, the 2nd will accept an offer of around $1000 to rid of the lien because they will recieve nothing if the property is forclosed and sold at auction. I have no real experience in this so wait for verification by someone more qualified.

MERRR

3

Not enough info.

Is it in FC? Is the HO filing BK? What repairs does it need? Which banks?

But at a pinch I’d offer 1st 150K and 2nd 1K

4

Thank you JDS. I live in NM and it’s a Judicial Foreclosure state. I was reading “Guide to Advanced Investing Techniques” by Alexis McGee (she owns foreclousures.com) and i’m thinking i’m not going to be able to buy the note for a discount JDS :frowning: or…wait a minute. If i can’t buy the Mortgage Note from the 2nd lender since i’m not in a Deed of Trust state than what are my options? Should i "short the 2nd than? (what difference does it make if someone buys the note for 1000 bucks or shorts it down to 1000 dollars??? I’m confused still.