I have a deal where the 2nd mortgage is foreclosing before the 1st.
the house is overleveraged and it needs about 15k in repairs.
2nd is foreclosing 11/1/05
1st is forclosing 12/6/05
I offered the 2nd 3650, he countered at 17,500.
I raised ti to 4650, he countered at 15,000
The 2nd is saying is they forclose on the house then they might reinstate the 1st. I dont believe him
He also told me that if they do forclose then nothing will happen to his lien.
I dont know if that is true, I dont see no reason why the 2nd would buy the first, there isnt any equity and it needs repairs.
My question is what are all of the possibilites that will happen if the 2nd goes ahead with the foreclosure.
I really think hes bluffing, but I dont really know.
SHORT SALE EXPERTS WHAT WOULD YOU DO?
Buy the first and kiss the second.
question are the 1rst and 2nd at to diff banks i will assume by the wording that they are if so a rule of thumb is to offer 10% of balance so 4,000 now …the reinstatment part i have not heard of before but if the sec foreclosese first like this they can then offer the first there own short sale and try to get it at a discount…on the other hand with 1rst foreclosing also when this makes it to auction the 2nd can kiss the mortgage good bye thats why we can offer such a low offer to them…if they want to play hardball like this offer them 2,000 next time when they call back or ask why your offer went down when they countered say because someone had to you weren’t…if you read back post this is something reo consultants does…also let them know all that they are losing by not letting you purchase at a discount so when you talk to the bank that holds the first let them know that it will cost them about 20% of house value to do the forclosure …then on top of that maintaing the house cutting the grass and all that comes with that…get repairs and get estimates from companies and let them know to make sure its a little on the high side…also remind them for every dollar they have lent out on the books they have to have 7 dollars in reserve…also when you fill out the hud1 dont forget about the real estate agents comission .
What do you mean when you say…
…if they want to play hardball like this offer them 2,000 next time when they call back or ask why your offer went down when they countered say because someone had to you weren’t…
If the 2nd forecloses what will ahppen to their lien?
what i ment was u offerd 3650 then 4000 well now they seem to want to play the hard way so offer them 2000 now their gonna call back and most likely say wait your offer went down and tell them ya because someoen had to come down you werent…now someone else that has done many more short sales then me might be able to say this for sure but im almost certain that even though the sec foreclosed first because the 1rst is also foreclosing now it most likely go like this…2nd goes to auction no one is going to bid because you dont own the home just by buying the 2nd so the bank will bid 40,000 so they dont lose anything …and now once this happens the 1rst will go to auction now if you were to bid at it at auction and win the 2nd is voided out …and this is why you can offer the 2nd such a low offer to buy out of short sale
Thank you I understand now