Mike:
You can do either depending on WHAT your objectives are…
EG. If you purchase the 2nd lien lenders note for $10K cash they would ASSIGN you their interest in that loan.
Now you can initiate foreclosure proceedings on the homeowners if you feel they are not willing to deed the property to you “subject to” their other financing…
OR
You could simply PAY OFF the 2nd lien lender concurrently with the property owners wishing to sell you their home “subject to” any existing financing.
sub2 & offer to 2nd mortgage for discount? - Posted by Mike (IN)
Posted by Mike (IN) on February 19, 2004 at 12:55:47:
When offering a 2nd mortgage company a discount, do you approach it to them as “buying the note” or paying off the note for a discount. Is it the same?
Here’s the deal;
Value of house $150k
1st mortgage; $98k
2nd mortgage; $34k
The payments on both mortgages have had several late payments. The 2nd mortgage has a history where in the past 12 months, the borrower has been 30+ days late 5 times. The first is behind 1 month & the second is behind 2 months. I am looking at taking the first sub2 and paying off the 2nd for a discount. I was thinking of an initial offer of $10k for the 2nd.