I’m making an offer tomorrow and am looking for some advice. The contract is a SUB2, but contingent upon my successful shorting of THREE junior lienholders. What is the terminology I want to use with them (being the junior lienholders)? The 1st is foreclosing and the sale set for April.
ARV 160
1st 85K & 7K to catch up
2nd 19800 second mortgage
3rd 6500 balance of a window job
4th $5400 3 year old judgement
House needs $25K to retail.
I wrote my contract subject to each junior lien accepting no more than 10% as payment in full. I just completed a short sale on another property, and know that can take a while, should I approach these differently?
Hi,
It would make more sense simply to offer 500 dollars to the 3rd and 4th lien holder. the second, maybe 1000.
steve
That sounds even better, I’m looking for advice on the best approach with those lenders. By approach I mean we all know they are doomed if this makes it to auction, is it realistic to be able to do this over the phone after I fax them the authorization to release info? What language do I use with them to make sure we’re on the same page and the liens are cleared?
If you can go to your local county clerk office online to get the dates of when each was filed. You will also need to prove to them that they wont get any money if it goes to auction. YOur wording doesnt have to be fancy. Just tell them what number they are in relation to who gets what. Like - so accordingly, our offer to countrywide is 200k for the short sale which will not allow you to net anything. Please accept the $500 dollars as payment in full for your …
something along those lines.
steve