I'm analyzing a pre-fore/subj to and the 1st mortgage (balance due) is not too onerous. 2nd creditor in line (Heloc) balance is very high. I'm not sure how to proceed with Heloc creditor in terms of negotiating with both lender and existing Homeowner. In theory, my goal would be to negotiate this high Heloc balance down for the homeowner, then in turn, take over existing mortgage Subject To, and find a tenant buyer (Lease Option) on this property. Any thoughts on how to remove Heloc lien on this property so I can take over Deed and Title?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
6y
The heloc/second will Not be negotiated down....without going a short sale. Foung a sub2 with a first And a second/heloc is extremely risky and foolish. What will you do when the heloc/2nd holder calls the loan due when they learn of the sub2 sale?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
6y
The heloc/second will Not be negotiated down....without going a short sale. Foung a sub2 with a first And a second/heloc is extremely risky and foolish. What will you do when the heloc/2nd holder calls the loan due when they learn of the sub2 sale?
Good question Wayne, I'm not sure. I'm a newbie to subj to deals hence my initial question. So even if the homeowner worked out a deal (not negotiate down) to bring Heloc current (not paying entire balance due, just the portion in arrears plus all late fees and interest), could Heloc lender (2nd) still call the loan due once a subj to sale takes place? This would be "outside" of a short sale. First mortgage balance in arrears gets paid in full and 2nd Heloc lender is now current. Still too risky of a deal?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
6y
Either lender can call the loan due when title transfers to someone else without them being paid off. Any loan in arrears, even if brought current, gets watched closer.
Investor · Springfield, MO · Member since 2012 · 320 posts · 115 votes
6y
@Edward Adams buy the 1st from the lender, continue the foreclosure with the same attorney. The 2nd gets wiped and you likely get paid on the courthouse steps. Offer to pay full face value or more for the note.