GreenTree Second Mortgage Requires Lots Of Green
December 28, 2010 / /
http://kevinandfred.com/power-hour/bank-of-america/
Kevin and Fred discuss a recent short sale with Bank of America and Green Tree.
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HOW TO CLOSE AT LEAST 3 DEALS IN YOUR NEXT 90 DAYS
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About the Authors
Kevin Kauffman & Fred Weaver
Kevin and Fred the founders of Group 46:10. Over the last 10 years Kevin and Fred, and their team have closed tens of millions in real estate all over the country and have created some of the best training for agents in the market. Kevin and Fred are also highly sought after teachers whose work has helped agents all over the country build their own next level real estate business.
I love how your San Diego back drop is identical to one of your Tempe back drops. LOL
Ha ha ..But I am actually in San Diego right now =)
When the 2nd mortgages get sold, the price usally depends on the quantity that was purchased, pricing also depends on whether the 1st is performing or not, which States the morgages are located, how much underwater, etc.
Prices paid for them can be between half a cent to 6 cents on the dollar and much more if the 2nds have equity.
All of this variables will come into play when the 2nd is asked for a payoff on a short sale.
I attended debt buying conferences this year and found out how this debt buying of mortgages works. A lot of people will be surprised to hear that in the future this debt buyers will be trying to collect on a lot of people, especially when the economy turns around.
As an example, I heard of a trade of 2nd mortgages in the last 2 months that was supposedly bought by a hedge fund in the East Coast which had a total of $50 Million of Unpaid Principal Balance, the price was for less than a penny on the dollar. When you buy that much, some of the 2nds may be unsecured, meaning foreclosure already happened.
I currently have the following short sale: 1st with B of A and 2nd with Green Tree (was B of A). Balance on the 1st is $1.350.000 and balance on the 2nd is $147,000. Current value $800,000. GreenTree wants 5% of the sales price = $40,000. B of A won’t pay more than $3,000 to Green Tree, Green Tree won’t budge below $40,000. Seller can’t give, buyer won’t pay $40,000 over “value.”
Any suggestions?