Good Evening Carl,
I’m not sure how Country Wide might view one of their loan processors releasing that type of information; don’t get me wrong, I think it’s great you have that “in”. I would just be a little careful on posting that type of information.
Here is my two cents, however you should seek the counsel of your real estate attorney, accountant, pastor and real estate agent before putting any of my advice to work. (now that’s a disclaimer that should keep me out of court…ha ha)
When the loan balances are so close to value, I have had the best luck talking with the bank when I had a “packet” from the homeowners. Remember, the bank doesn’t own the property, the property simply backs up the loans.
The packet I put together includes information directly from the homeowner noting they are not, will not and have no intention of making another payment. This generally takes the wind out of the bank thinking they could work something out with the current owners.
It also includes photo’s of the property, this of course only works if the property is not in good shape.
Finally, it includes my offer. I would send the same packet to the 1st and 2nd mortgage holder. This way they know you are attempting to work a deal that includes all the financing currently on the property.
Find a good title company that will work with you, mine will complete title searches for $75.00 a property; this will give you an idea of what else might be going on with this property. Or, you could always ask the 1st mortgage holder to supply the property free from all taxes and liens. Including a copy of your preliminary title search will at the least, show the lenders you are serious about this deal.
As far as the amount to offer, it’s not based as much on what the bank is owed, as much as it is on what you can pay for the property and make a healthy profit. I don’t know the DC area, so I wouldn’t be much help with that. But as a general rule, not always; I offer the 2nd mortgage holder 10% of the balance. If the 2nd agree’s to this and the 1st says they aren’t interested in the offer you made, the deal isn’t over. You could…sign a Quit Claim Deed or Long Term Lease-Option with the homeowner on the 1st, then place it into a Land Trust, and pay off the 2nd at the 10% they agreed too.
Another investor in California couldn’t get the 2nd to discount at all, and the 1st agreed to negotiate; so he took care of the 1st and the homeowners gave him the item they purchased with the 2nd, a Harley Davidson! He then took over the payments on that for a little while and then sold it to pay the 2nd off.
Good luck,
Ray Rochefort, mgr. mem.
Purpose Investments LLC
purposeinvest@aol.com