Property Being Auctioned Tomorrow... - Posted by PD

Posted by Joe Kaiser on December 17, 2003 at 01:41:52:

If you’re already buying the first, why don’t you just foreclose the
2nd away?


Property Being Auctioned Tomorrow… - Posted by PD

Posted by PD on December 16, 2003 at 22:35:52:

I have been working with the second mortgage to do a short sale since this past week. They have already written this loan off, however, since they are still on record as being in second position they still wanted us to make an offer. We submitted an offer Monday and they were considering it because the house is being sold at auction this Wednesday (tomorrow). If it went to sale they probably would not get anything. We got an initial response from them, saying that they would let it go to the sale because we did not state how much the first mortgage was going to receive. I told them I would fax the information first thing tomorrow morning. We already have the first ready to go because we are paying full price for that. My question is, how best should we proceed with this deal? The first mortgage is ready to stop the sale, however, if we have them stop the sale the second mortgage company may lose the sense of urgency in accepting our (very low) offer thus we lose some of our negotiating power. Or do you think we should offer to buy the second at a discount if they will accept that. We pretty much have everything ready to go and don’t want to lose this deal. As I said the second mortgage company already has written this loan off so we really just want them to release their lien position.

Any suggestions? Time is of the essence. Also, should we have to reveal them what the first is getting?