Hey all,
I have not done a short sale or a sub 2 deal nor do I pretend to know what to do. Here is what I know.
This lady filed Chapter 7 on Feb 06. Its a side by side duplex. The condition of this property I do not know. I figure at least 10K a unit for repairs. She lives on one side and told me it was updated with plumbing, electrical, etc.
First lien is a 30 yr fixed at 9% interest with 102K remaining
Second lien is a 10yr fixed at 25% (no typo) with 27K remaining
The trustee gets 273.00 a week on top of the above payments
Comps are 125-130K range. She got an appraisal at 141K. My guess was that the bank didn’t want to take it back so they “made” the appraisal come in to where it needed to. She has a letter from the second lien holder saying they would take 10K right now. Suprise suprise.
Just looking at the numbers it doesn’t make sense to pursue. BUT…how do I know what the banks will take unless I try? I don’t have any of the authorization paperwork or quite frankly know where to begin. Maybe I could get the second lien holder to take a low ball offer and assume the first lien. This lady absolutely wants out and has already signed my authorization form and also told me that she would deed me the house. Any suggestions or help is welcomed,
Nate-WI