Doing some due dilligence on a property and got the mortgage docs to look at and it looks like the second lien has a balloon due on the 12-01-06. How would you handle this? Here are the numbers.
First Mtg-----74.1K @ 6.2% interest/ 30 yr fixed, no balloons
Second MTG----14.2K @ 6.5K interest/ Balloons on 12-01-06
No repairs needed/ move in condition
Appraised in Aug. for 132K
I think it was a “re-fi” appraisal and this market dictates that its in the 115K-120K range max. Desireable location and good area.
I"m looking to sub-2 this home. Those numbers include back payments as they are the payoff numbers I got from the lender. Owner is 5 months behind. I could use one of my credit lines to pay off the second lien IF I really needed to. Not sure this is a great deal to drop 14K down. Lawyer fees should be known today. My guess is about 3K.