IN A NUT SHELL:
2nd loan balance $19,260.00 as of November when notice of default (lis pendens) was filed
1st loan balance $51,000.00, arrears of $5,500.00 to reinstate
Home ARV=$70K
Repairs= a lot of cosmetic work: new carpets, new kitchen, painting, nothing major. I’ve seen the inside already but want to bring in my contractor to get an estimate.
Strategy: Short sale first and 2nd. Owners are totally behind my idea and do not want home any longer. They are renting elsewhere, house is vacant.
Problems:
1.) 2nd lender says go ahead and send in HUD-1 & he’ll let me know if offer is accepted. But he said “offer better be good because my company will buy it by paying off the first and then fix it up and put someone in it with a no money down loan or lease option”
2.) 1st lender will only allow me to speak with the foreclosure atty. He won’t give me a definitive answer on whether or not his client will accept a short sale and does not return my calls. He hasn’t even filed the notice of default yet at our courthouse. He does tell me though that the 2nd lienholder does not have a valid lien because they failed to have the father/father-in-law (who is in title) sign off on the mortgage. I’m not sure if he is trying to give me some sort of hidden advantage or not. He told me to check into that for him (isn’t that his job?)
I sent in a HUD-1 to the first lender’s atty offering $26K for the house with the first lender getting $22,500.00 and the 2nd getting $1,000.00. Of course, this atty hasn’t responded
Does anyone have any thoughts or ideas on this one? Any advice on how to move forward would be appreciated. The owners are waiting to hear back from me.