Dallas-Fort Worth Real Estate Investor Club

Anyone negotiated a short sale or any sale when there is a 2nd mortgage - and still made it profitable?

  • 19 Jun 2009 11:49 AM
    Message # 187078
    Deleted user
    Just thinking about what kinds of things I might run into when dealing with sellers, and the likelyhood of a potential deal being profitable when there is a 2nd mortgage or lien of some sort involved.  Has anyone managed to work a (profitable) deal in this kind of situation?  Ive heard other investors that simply walk away when they encounter such a scenario, because its like pulling hair and rarely works out for them.  What say you?


    Last modified: 19 Jun 2009 11:49 AM | Deleted user
  • 22 Jun 2009 5:15 AM
    Reply # 187711 on 187078
    Deleted user

    Usually when doing a short sale the 2nd lien holder will discount the amount owed tremendously.  They realize if the 1st gets foreclosed on they will be left with nothing.  You can expect for them to discount as much as 80%.

    Short Sales require a lot of paperwork and sometimes take months to close.  I have closed one in as little as 45 days but they usually take 4-9 months.  Some loss mitigators are very hard to work with and will only waste your time.

  • 24 Jun 2009 1:25 PM
    Reply # 188431 on 187078
    Deleted user
    Randal Best wrote:Just thinking about what kinds of things I might run into when dealing with sellers, and the likelyhood of a potential deal being profitable when there is a 2nd mortgage or lien of some sort involved.  Has anyone managed to work a (profitable) deal in this kind of situation?  Ive heard other investors that simply walk away when they encounter such a scenario, because its like pulling hair and rarely works out for them.  What say you?



    Call both the 1st and 2nd lienholder and find out from the 1st lienholder how much they are willing to pay to the 2nd lienholder - call the 2nd lienholder to find out how much they want from the 1st lienholder.  Normally, the 1st lienholder will only pay the 2nd lienholder $1,000 to $3,000. I had a successful closing on a 1st and 2nd that took 2 1/2 months from the time it went under contract until it closed. I am currently working on another 1st & 2nd short sale.

     

  • 21 Aug 2009 9:34 AM
    Reply # 209705 on 187078
    Deleted user
    I have a group that does all my shortsale negotiations & is VERY good, and usually much faster than I could ever get it done.  If anyone has any higher-end shortsales they would like to partner with me on, I can have my negotaitors handle it & we can split the profits.  Also, REALTORS, I am looking for $1-3M distressed properties for a shortsale, my website is www.bayriverinvestments.com, let me know what you have listed!
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