Second Mortgage Default Issue

Norine:

Thanks for the info.  This looks like a viable transaction.

I am surprised that B of A is trying to foreclose while being in second position.  If the foreclose they will have to pay Chase or re-instate what is owed to Chase.  In this cases usually the second at the end does not foreclose and lets the first foreclose.  That way the homeowner is still liable to the promissory note on the second mortgage.  I would not be surprised if this happens.  Banks are savvy but often miss important details given the volume of defaults they have.  Most of this would happen at the last minute.  Chances are B of A will take a long time to start foreclosing despite all the noise they are making.  If they start prior to Chase,  then they will stall close to the trustee sale.  The reasons are evident.  If they foreclose the owner will not owe them anything.

I will show the intake to my partners.  We will reply to you tomorrow.

Thanks for considering me for your short sale needs.

Sincerely,

Oscar

Oscar:

 

Here goes:

 

A 4-Plex multi-unit  located in Stanislaus County

All 4 Units are rented $700 however one tenant will vacated end of Aug 2008O

Purchased in 5/2006 not sure what loan type with origination loan date of 5/2006

Foreclosing Creditor is B of A ….NOD not filed yet.

B of A have sent a notice to homeowner encouraging a loan work out.

 

 

Listing Info:  Off the Market as of today. It was listed for a brief couple week back in 6/08.

Representing Seller as a Selling Agent

Present "AS IS" CMA    $200k - $210k

Property Condition : Fair to Good (Alot of remodel done prior years )

 

 

Mortgage Info

!st  Chase Bank  $480k  payment est.   $3800   5mos behind in payments

2nd B of A         $150k  payment est.   $2000   5 mos behind in payments

        2nd is a result of refinancing.

Homeowner is in financial distress as Construction have slowed down dramatically.

They are just getting by to survive.  Using the rental income funds to help with their

living arrangements and daily survival so therefore they have not made any payments

to the bank since March 08.  No Bankruptcy or Divorce . Both very cooperative and

expectation is to avoid foreclosure. Do not own other real estate.

 

Please advise asap ….

 

Thank you. 

 

Norine