I am about to start submit a short sale package on a property with two liens on it. I need to completely eliminate the 2nd and get some taken off the of the 1st as well. Here are the specifics:
-ARV of 130K
-1st for 125K, 2nd for 10K
Should I sumbit a package to the 2nd lien holder asking for them to completely eliminate their claim, or should I ask them to reduce it to something like 2K?
And should I sumbit the short sale package to the 2nd lien holder first, wait for a reply, and then after I get it submit my other package to the 1st lien holder?
It will depend on what type of 2nd is on the property, if it’s a 2nd mortgage with the same bank they may not be willing to deal as much as if another bank owns the 2nd; they know they are in a week position. I generally offer 10% of value.
I think you would have better luck working out the details of the 2nd first, but I have had other investors tell me they have better luck working with the 1st note holder first. I’m not much help with that part of the question.
Enjoy your day,
Ray Rochefort, mgr.mem.
Purpose Investments LLC