Home Selling in Tucson>Question Details

Barb, Home Seller in Tucson, AZ

How do I sell a second lien on a property I sold?

Asked by Barb, Tucson, AZ Sun Jan 15, 2012

After my mom passed away, there was a line of credit on the property - since then I sold the property. The buyer wanted to make 2 liens - one for the title company and the second to pay me $10,000. The agreement states that the buyer will pay off the second lien to me at 50% in January 2012 which didn't happen and probably won't. I need to sell this second lien to obtain at least half of the pay-off. What are the options?

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I agree with Donna, Jim Hogan is your best choice. BUT if an investor bought the house and plans to flip it, he will have to pay off the lien when he sells the house. You might be better off just letting the lien stay on the title until he sells unless you need the money right now. You will have to take a huge discount if you sell it now.

I hate to hear these sad stories. You should check on the status of the first lien and see if he is current on it. If not, you should consult a real estate attorney and see what your options are.

Anita
0 votes Thank Flag Link Sun Jan 15, 2012
Hi Barb,
I think you should fully understand what you are dealing with and talk to a Lawyer and also a CPA. There are many creative financing remedies that may help but its more complication and maybe not a one sentence answer. I think its in your best interest to keep asking and save the house. Now is the time to get this problem working out. You also may come out smelling like a rose. Its possible the property went up in value since the sale took place. Think Positive! And hang in there!
0 votes Thank Flag Link Sun Jan 15, 2012
If Jim doesn't have any encouraging advice, please call an attorney. You can start foreclosure on a home even if you are in second position.

Anita
0 votes Thank Flag Link Sun Jan 15, 2012
Anita, you are correct it basically is a second lien. The first lien is also current and at this point I know the home is not occupied and not on the market either. It is quite a convoluted scenario so I feel like I basically gave away the property and collect $80 a month for the next 25 years!!!

I am going to take your advise and contact Jim Hogan.

Thanks to all!
0 votes Thank Flag Link Sun Jan 15, 2012
Investors do buy notes - as a discount. At 50%, it would probably be very attractive to them, provided the buyer had a good payment history. With delinquent loans, they sometimes go for cents on the dollar, even as low as 2 cents in extreme cases. The problem I see is that what you have is a second mortgage (am I correct in assuming that?), which means that in order to protect themselves in case of delinquency or insolvency, the investor (or you) would have to come up with the money to buy out the first mortgage holder first.
0 votes Thank Flag Link Sun Jan 15, 2012
I am trying to figure this out. If you sell the 2nd lien which came from a home equity loan on a house you have since sold. How did you get a home equity loan on a house that has been sold? What collateral will a buyer of the note get since the house has since been sold so you are just buying a promise to pay and not having anything to back it up since you sold the house. Am I missing something?
0 votes Thank Flag Link Sun Jan 15, 2012
I guess I need to clarify - the note is not delinquent - I am willing to sell at a discount of no less than half the full amount of the note ($10,000). Basically I just want to get out from under it and recognize some profit from the sale, in a lump amount. The property is in Flagstaff.
0 votes Thank Flag Link Sun Jan 15, 2012
I don't know if any investors want to buy delinquent notes, but I know that Jim Hogan does buy notes. If he doesn't want it, maybe he can tell you who would. He owns Hogan School of Real Estate.

If an investor is taking a problematic note off your hands, you need to realize you are not going to get all the money that's coming to you. You have to give the investor an incentive to deal with your delinquent buyer. The investor, if you find one, will buy the loan from you at a discount.

Best of luck.
0 votes Thank Flag Link Sun Jan 15, 2012
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