Im just curious how much of a discount some of you ask for when dealing with short sales? What percentage range do you go for on the 1st and 2nd?
I just signed a deal with FMV of $245K at $190K.
There are 2 loans; $190K 1st, $47K 2nd
I am offering $160k on 1st, $30k on 2nd. How does that sound?
The house is in great condition. No repairs needed. 3 months behind and the owners cannot not make anymore payments
Thanks, J
It is really not up to you as to what the 2nd is going to receive. The first is going to dictate what amount they are willing to let the 2nd have. The first will want the most amount toward their balance and refuse to allow the 2nd to eat into their balance because if it goes to auction, the 2nd only gets what is left over anyway.
If they believe that they can recoup all their money, they would rather let it go at auction especially if there isn’t anything wrong with the property.
Good luck, but this doesn’t sound like short sale material.
Passing Thru,
So since the 1st is $190k, they might want to let it go to auction cuz if someone was to bid $190k on it they would get paid back 1st and the 2nd would lose out altogether? Is that right?
So if the 1st wont budge it might be possible to get the 2nd to come down because they know that they are in a losing position, right?
Thanks for the imput! J
Negotiate with the first for around $170 and find out what they would allow the 2nd to receive. You should be able to get the second for around $3K. Remember, if the 2nd will commit to what the 1st stipulates, and they want more, you can always take care of them outside of closing. I did that with one and they agreed to write a letter stating that they would take $3K at settlement (that shows up on the HUD-1) and we paid them an additional $2K outside of closing for the lien release.
Also, have you checked to see what judgements the owners have? Judgements follow the person but are attached to any real property that they own. If a credit card company or furniture store, etc. has a judgement, you will also have to pay them or negotiate with them for a release.
Really, $3K for the $47k 2nd? I guess they might get nothing if it goes to auction?
I am waiting for them to log in my info release forms, so maybe by Monday I will be able to start talking to them. Thanks, Ill keep you posted, J