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,,,
Steven P. Wood, Realtor
Palm Coast Realty, Inc,
12300 Alt. A1A, Suite 209A
Palm Beach Gardens, FL 33410
I am at Your Service for ALL of Your Real Estate Needs, Specializing in Jupiter, Juno Beach, Tequesta and Palm Beach Gardens !!!