How do you buy a foreclosing home with 2 mortgages on it? I know the oweners, and they owe more than it

Asked by Gail, Oakland Township, MI Thu Jun 26, 2008

would sell for. They just stopped paying their mortgage. How would a short sale or foreclosure work because their are 2 mortgages on it and how much less (under what is owed & what home is worth) can I expect to pay?

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Lisa Bender, , Howell, MI
Thu Jun 26, 2008
Hi Gail,

Having 2 mortgages is not a problem doing a short sale it's just twice the amount of negotiations. You have to get both banks to agree to a payoff amount. Get a number from the first and negotiate like crazy with the second. A good rule of thumb is that 2nds like about 10% of balance but I've seen them take as little as a $1000. They won't get much from 1st (if anything at all) if the house goes back to 1st bank.

Give me a call I can help walk you through the negotiations or if sellers are just trying to do it alone I can help whether it's listed for sale with a Realtor or not.
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