OK… Here’s the deal.
1st mortgage with Fremont =120k
2nd With Ocwen =30k
Repairs = less than 2k
After Repair Value =160k
As you can see the only way to make this profitable is with a short sale. The homeowner has not made a payment since September and Fremont is foreclosing. I believe Fremont is still the holder of both loans but Ocwen is just servicing the 2nd. I gather this by the fact that Fremont originated both loans and on the notice of Lis Pendends they, Fremont, are listed in both the Plaintiff and Defendants sections of the suit. Ocwen has charged off the loan but wants money to do an appraisal. The home is in very good shape and in a good area.
It was hard for the realtor to even find good comps that support my offer (110k) to Fremont. I would be very happy if Ocwen took 1k and Fremont took a 10% hit on what they loaned out. If Fremont just does a drive by BPO they MIGHT accept my offer. If they go inside I’m sunk. It might be the same with Ocwen. I considered trying to short the 2nd and picking up the 1st Sub-2 but the homeowner is 7k behind and the interest rate is much to high.
This would be a flip that I hope to gross at least 30k from. Any suggestions on the best/better way to handle this.