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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Strategy on buying a junior lien.. Posted by Ward-CA- on May 17, 2002 at 7:08 PM In Reply to: Negotiating with a 2nd in foreclosure posted by Gina (Northern CA) on May 16, 2002 at 9:54 AM : Hi Ward: : First want to say what great information is presented on your board. I look forward to meeting you someday. : We are working on a lead right now that we got on a letter mailing to a pre-foreclosure. : There is a first on the property in the amount of $249,000 that is being foreclosed upon. There is a second on the property in the amount of $54,000.00 that is also in default. The holder of the second note is a private individual and he is experiencing financial difficulties. : How would you approach the holder of the second and begin negotiations? How much would you offer for his position, or as in the secret of negotiations do you let him name the price first? : I have read somewhere that sometimes when they know that their position is being wiped out that they will settle for pennies on the dollar. : Looking forward to your suggestions. We are in the process of getting the owner to quit claim the property to us today, so will need to start working on curing the defaults. : Thanks, : Gina Hinds =•=•=•=•=•=•=•=•=•=•= Gina, Obviously you’d like to get the greatest discount possible when buying an existing trust deed and note. So I would start out by sharing with the 2nd trust deed owner that they are in a precarious position of either getting wiped out by the impending foreclosure of the 1st or by getting squeezed out if the owner ducks into a Chapter 13 in Bankruptcy and delays the foreclosure so long that any protective equity enjoyed by the 2nd would be obliterated. So if the 2nd trust deed holder doesn’t have the cash to either reinstate the delinquent 1st or pay off the 1st then he should seriously consider selling out to you in order to recoup something for his 2nd. You might state that even though you have the knowledge and resources to neutralize the 1st, you still could lose a lot if the property owner tied things up a long time via bankruptcy. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Hi Ward: : : First want to say what great information is presented on your board. I look forward to meeting you someday. : : We are working on a lead right now that we got on a letter mailing to a pre-foreclosure. : : There is a first on the property in the amount of $249,000 that is being foreclosed upon. There is a second on the property in the amount of $54,000.00 that is also in default. The holder of the second note is a private individual and he is experiencing financial difficulties. : : How would you approach the holder of the second and begin negotiations? How much would you offer for his position, or as in the secret of negotiations do you let him name the price first? : : I have read somewhere that sometimes when they know that their position is being wiped out that they will settle for pennies on the dollar. : : Looking forward to your suggestions. We are in the process of getting the owner to quit claim the property to us today, so will need to start working on curing the defaults. : : Thanks, : : Gina Hinds : =•=•=•=•=•=•=•=•=•=•= : Gina, : Obviously you’d like to get the greatest discount possible when buying an existing trust deed and note. : So I would start out by sharing with the 2nd trust deed owner that they are in a precarious position of either getting wiped out by the impending foreclosure of the 1st or by getting squeezed out if the owner ducks into a Chapter 13 in Bankruptcy and delays the foreclosure so long that any protective equity enjoyed by the 2nd would be obliterated. : So if the 2nd trust deed holder doesn’t have the cash to either reinstate the delinquent 1st or pay off the 1st then he should seriously consider selling out to you in order to recoup something for his 2nd. : You might state that even though you have the knowledge and resources to neutralize the 1st, you still could lose a lot if the property owner tied things up a long time via bankruptcy. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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