I’m working with a lady who is in desprate need to sell her home. She is 5 months behind on her payments. She tried to work out a payment plan with her lender but she still can’t afford that. Here are the numbers:
ARV: 110k
1st mortgage: 72k
2nd mortgage: 15k
repairs: 20-25k (home has major foundation issues)
I have done short sales on homes with only one mortgage, but this is my first with 2 mortgages so I’m in need of help. I was gonna try to attempt to short sale the 2nd then the 1st. If you were in my shoes how would you go about this?? Also what would you offer?
It isn’t all that different; request ss package w/ 1st TD, when your offer is approved notify the 2nd. TD & negociate a pay off, some times the first will only allow a max of $1000 to the 2nd. TD.
MAJOR foundation issues? If I were you, I’d just pass, and move on to anotehr deal. Unless you got the home for about 40-50K. Even then… there are usually plenty of deals out there that don’t need that kind of major work.
As for the 2nd. Offer them $1K. Typically, its all the 1st lender will allow anyway. I wouldn’t offer them more than $2K. That’s over 10% of what they are owed.
thanx for the replys. im not worried about the foundation issues. im an experieced real estate investor. i have rehabed many homes with foundation issues before. this is just my first ss with two leins. so i was trying to get some adivce on the ss.