I've been thinking about buying properties from people who have a second mortgage and third mortgage on 2-4 unit buildings. My problem is, I just can't decide whether I should make the time investment to focus on the properties or not. Here are my thoughts and my dilemma on this situation:
I've heard people who take out a 2nd and 3rd mortgage usually do so because they can't find money elsewhere
Not many investors seem to be working with people with second mortgages (I can't find anything online, please correct me if I'm wrong)
It increases their monthly payment and they are more likely to go into foreclosure so a short sale might be the only way to buy the property in some scenarios
They seem to be motivated sellers but they might not accept the offer that I'm going to give them since they may owe more on the property than what it's worth
What do you think? is it worth my time to focus my energy on people with second mortgages? Would you consider them "Motivated Sellers"?
I'd love to hear any thoughts on this subject!
Not many people focus on underwater homeowners because of the lack of equity.
You're right, even if they accept your offer, they probably cannot bring money to the closing.
I am interested to see if any investors have any creative solutions for these motivated home owners.
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