Hi Holly,

Using the amount of the 1st or the 2nd mortgage will not be a good way to determine what to offer.

The important number is Market Value.

For example, if there is a 1st mortgage of $250,000.00 and a 2nd mortgage of $50,000.00 on the property, and the Market Value of the property is $300,000.00, then do not expect the 2nd mortgage lender to turnover the 2nd mortgage at a huge discount.

On the other hand, if there is a 1st mortgage of $250,000.00 and a 2nd mortgage of $50,000.00 on the property, and the Market Value of the property is $225,000.00, then do expect the 2nd mortgage to accept $2,000.00 to $3,000.00 to have the 2nd mortgage remove the 2nd Mortgage Lien off the property.

The mortgage companies will get Appraisals on the properties to detemine Market Value.

Can you figure the reason why the 2nd mortgage will accept such a low amount?

The next step is to determine how much to offer on Market Value.

And that is determined on how much you, and everybody else, wants that particular property.

If you think that you are the only one that wants the property, then put in a bid around 5% to 10% less than the Market Value. If you think that others want that property more than you do, be sure to out bid them, and that means bidding more than Market Value.

I hope this helps,,,

Sincerely,

Steven P. Wood, Realtor
Illustrated Properties Real Estate, Inc.
300 W. Indiantown Road
Jupiter, Florida 33458

Direct: 1-800-298-2566

eMail: Steven_P_Wood@msn.com

Web:
http://www.homepages.com/StevenWood1
http://stevenwood.rmlsfl.mlxchange.com/
http://www.ByJoveMyHome.com/

Office: 561-746-0008
Fax: 561-747-5086
Cell: 703-851-6535

I am at Your Service for ALL of Your Real Estate Needs, Specializing in Jupiter, Juno Beach, Tequesta and Palm Beach Gardens !!!

Sun May 4 2008, 14:49

Holly, Phil really gave you some good advice. The lenders who hold the second DO Not have to go along. I have seen them hold out. Please don't assume anything in this market. If the property really does not matter that much to you than I would go along with what Phil told you and see what happends but don't be surprised if they say NO.

Sun May 4 2008, 04:59

Hello Holly,

Keep in mind that the lender will hold out for the best offer and that your offer may be competing with others. Will it matter if you lose this property to a better offer? If it doesn't matter to you, then make a lowball offer.

Be prepared also to wait a long time for your anwer, which could be one of three.
1. Yes
2. No
3. Counter

Phil

Sun May 4 2008, 04:38