NEED ADVICE ON SHORT SALE!

Foreclosures, Short Sales, Tax Foreclosures
1

Hello,
1st lien: $31,000 ($24,000 Principal amount)

2nd lien: $100,000 ($79,000 Principal amount)

FMV: $130,000

Second lien was headed to sheriff’s sale but a technicality has stopped the sale for at least 60 days.

First lien is heading into foreclosure.

How would you short sale this deal?

2

Hello,
I forgot to mention that both liens are from the same lender.

The second lien is a Home Equity Loan.

3

If both are with the same lender get them to consolidate the loans and shortsale as a whole and not as 2 seperate ones.

That is what I have just done with Aegis mortgage.

4

Thanks green queen!

5

I tried to get Chase to consolidate the two loans and they told me that they don’t do that. I was reading some of the other discussions and I ran across the idea of doing a short sale on the second and catching up the back payments on the first. What would I need to make sure of before I tried this strategy?

6

The best advice is simply ask the lender what they would like to see done, otherwise we just keep guessing in the dark. Some might combine them, while others will discount but want to be paid off.

I don’t believe in guessing what they bank wants, I ask them. As long as we get the Short, do we care how they want to close the deal?

7

Where are you green queen? Help me out on this one!

8

There are a couple of way to do this.

I just did one with Aegis and they owned both, when i contacted the first I told them that hey had the second and the mitigator took the other file too and we done ashort with the 2 loans together i.e th efirst was $595k and the second was for $97k they put the two loans together and I shorted it $500k.

Now what you can do is depending on bank, contact the first and tell them that there is a second and what do their policy say about how much a second lien holder gets.

If they say 500 or 1000 then yo can tell them that they own the second too.

Now I havent done it like that I know some one who has; and becasue it was company policy the second had to eat it as they were not allowed to take anymore than what policy said.

9

green queen-

Are you saying that even if the the first and the second are from the same lender, the second will sometimes short independently of the first? I’m asking because I have a potential deal where the 1st and 2nd are the same. I would be satisfied just shorting the 2nd for 1k and assuming the 1st .

500k from $693k? Green queen those are the type of deals I need! How did you convince the lender to discount so much?

10

Thanks green queen. I see that you are the only investor on this site that seems to have experience dealing with short sales. Everyone of your answers makes sense and seems logical. A person would think that when someone ask questions on this forum, they would be bombarded with answers by so many so-called experienced investors or gurus. Unfortunately this is not the case on this forum. It seems to me that all the so called experienced investors are too busy trying to make money from selling services and information to the newbie and not from there actual investing in Real Estate. You so-called big time investors stop getting over on the newbie and help us out. You guys are too greedy. Do something out of the goodness of your heart for a change!