Can anyone please give me some advice on taking the 1st mortgage subject to after short selling the 2nd?
Here are the details:
2nd = 92k
ARV = 490k
I plan to negotiate with the 2nd and pay off what ever is left after my negotiations. Then I want to purchase subject to the 1st mortgage…How do I do this correctly so I don’t loose my investment on the 2nd and the 1st does not call the loan due?
Sounds like you have a good plan to short sale the 2nd mortgage. Due on sale I found out is just a threat. Unless you make mention to the lender that you’re taking title, don’t worry about it being called due. Make sure that you talk to the lender making yourself know as the freind of the owner helping him out in a bad situation. Assure the lender that the owner will not be making a profit if he decides to sell. Also let them know that the owner is thinking of filing bankruptcy and remind them how it will effect their books( in a nice way)use neative phrasing. let me know how it goes
i have an identical situation and would greatly appreciate your course of action and how it all turns out. its my first deal and im thinking i can negotiate the second and continue to pay the first note for a few months until it sells, without the title changing hands. will this work? let me know, thanks.
I don’t think the first mortgage holder would call the loan due if it was brought current & you started to make timely payments. I am pursuing the same strategy as you, looking for preforeclosure properties with a rather large second mortgage, discounting the second and taking over the first subject 2, fixing up and sell. Here is my concern. If the second mortgage holder requests a copy of your purchase agreement, will your sales contract state that you are taking over the first mortgage subject 2? If not, how is your financing reported on your contract? Typically, how would the second position view your request for a discount if they know you are taking over the first position subj 2? Do they even care you are taking the first subj 2? Please keep us updated as I have recieved varying answers to these questions. Regards, Mark.
This is the reason I posted my question on this site. I wanted someone with experience in this situation to help guide me through the paperwork process.
If someone has experience in Short Sales and taking over the 1st mortgage please post advice to us…
When you contact the 2nd mortgage holder you have to make it clear to them that the only way you can go ahead with the deal and keep them from losing everything is if they will accept your offer otherwise you will have to pass and the owner will almost surely have to let the 1st lender take the property.