WSJ: Second-Mortgage Standoffs Stand in Way of Short Sales

[UCGal]

[quote=enron_by_the_sea]What if someone wanted to actually keep living in their underwater house and simply stopped paying the second while staying current on the first? Will the second TD holder have guts to foreclose?

(I understand that second will keep the lien alive..)[/quote]

I’ve seen some courthouse steps action of late that suggests this does happen. A home or condo worth decent $ goes back to bene for a $30k opening bid with no takers… that suggests it’s the second that is foreclosing.

Here’s an example from priorityposting.com yesterday.

Sale Date/Time: 11/29/2010 10:00 AM
Status: Revert to Beneficiary
Estimated Debt: $22,648.77
Bid Amount: $30,000.00
Sale Amount: $30,000.00
TS Number: OLSON, MICHAEL
APN: 415-162-25-43
Priority #: 766571

Property County: San Diego
Property Address: 840 Turquoise Street, Unit 309, San Diego, CA 92109

http://www.sdlookup.com/Property-DEB58675-840_Turquoise_St_309_San_Diego_CA_92109

[sdrealtor]

enron
That is a very doable strategy and one my partner has used many times. The second wont foreclose if they are completely underwater particularly if it is a recourse loan. If they do, they give up their right to recourse and get nothing in the process.

In many if not most cases, the 2nd will eventually come to the table with an offer to settle for pennies on the dollar 6 to 12 months down the line. You have to be willing to trash your credit but if you are, it is possible to create a short pay situation on a 2nd for a nominal amount.

sdr

[sdrealtor]

enron
That is a very doable strategy and one my partner has used many times. The second wont foreclose if they are completely underwater particularly if it is a recourse loan. If they do, they give up their right to recourse and get nothing in the process.

In many if not most cases, the 2nd will eventually come to the table with an offer to settle for pennies on the dollar 6 to 12 months down the line. You have to be willing to trash your credit but if you are, it is possible to create a short pay situation on a 2nd for a nominal amount.

sdr

[sdrealtor]

enron
That is a very doable strategy and one my partner has used many times. The second wont foreclose if they are completely underwater particularly if it is a recourse loan. If they do, they give up their right to recourse and get nothing in the process.

In many if not most cases, the 2nd will eventually come to the table with an offer to settle for pennies on the dollar 6 to 12 months down the line. You have to be willing to trash your credit but if you are, it is possible to create a short pay situation on a 2nd for a nominal amount.

sdr

[sdrealtor]

enron
That is a very doable strategy and one my partner has used many times. The second wont foreclose if they are completely underwater particularly if it is a recourse loan. If they do, they give up their right to recourse and get nothing in the process.

In many if not most cases, the 2nd will eventually come to the table with an offer to settle for pennies on the dollar 6 to 12 months down the line. You have to be willing to trash your credit but if you are, it is possible to create a short pay situation on a 2nd for a nominal amount.

sdr

[sdrealtor]

enron
That is a very doable strategy and one my partner has used many times. The second wont foreclose if they are completely underwater particularly if it is a recourse loan. If they do, they give up their right to recourse and get nothing in the process.

In many if not most cases, the 2nd will eventually come to the table with an offer to settle for pennies on the dollar 6 to 12 months down the line. You have to be willing to trash your credit but if you are, it is possible to create a short pay situation on a 2nd for a nominal amount.

sdr

[Author]

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