Bought a second lien...
Hi all,
I am new in this area. I bought my first house this month without enough knowledge. It seems like I put myself in one of most complicated cases now...
I bought this condo on auction in front of county court house this month. It was a second lien. The bid started at 25K, I bought it for 56k. There was another guy there bidding with me. The first mortgage is 96K after about 10 years of payment, the loan's status is current, it had been paid until Jul. The first lender is Ocwen.
The condo is worth about 150k-160k. The outside of the building looks good. Have not seen the inside. For now I know the paint needs to be done in the condo and AC needs to be replaced.
Now I have several questions,
1. I want to negotiate with Ocwen for a discount on the payoff. In that way, I would not buy it exceeding the market value. But I don't know how to do this. Is there anybody knows about Ocwen, their regulation and how to do this?
2. I talked to an attorney, I was told I was the owner of the condo after I got the Deed. I haven't got the Deed yet. Is there anything I need to do to secure myself as the owner? Somebody told me to let the owner sign a quit claim deed, what is that for?
This is in Georgia.
#1 All Forums Contributor
- Investor
- Virginia
Not familiar with Georgia law but I do not see ocwen negotiating since they are in the position of strength.
Sophie Yin on top of this, they may also owe the HOA and some HOAs may have a priority lean.
Go to a title company, do a full title search and ask they to find out amounts owed.
@Percy N. I did get the title search done. No other liens. Tax is paid for 2015. Everything else is paid until July. The owner was trying to negotiate with the second lender for a long time for a better settlement; she didn't believe a junior lien would foreclose on her condo. So she has been paying everything else until I went to speak with her after the auction.
Chris Seveney Thanks. I have been told like this from multiple ppl, my agent, attorney, etc..😢 but I still would like to give a try. I don't understand if this would not bring any money, why was that guy bidding with me from 25k to 56k? He seems like an investor. I saw him there several times with his other team member. Why would he do something doesn't make any money? I am so confused of this.
Just by any chance, do you know about their procedure to do this? I have been searching on line for more inf. Somebody said needed to file their shortsale form for a short payoff. Then I need to file under the original owner's name? Or what I should do?
#1 All Forums Contributor
- Investor
- Virginia
You can try but again if a property is worth $150k and the bank has a first note for $90k, they will not negotiate it. They view it as they have $60k equity in the property. For a short sale, it's when it sells for less than is owed. Since you are paying off the 2nd mortgage and acquiring the property you basically own the property with a 90k note on it. If it is worth $150k the bank will not let it sell for less than 90k
In regards to another bidder "who looks like an investor" doesn't mean he is one. Your best bet now is to either sell property outright and minimize your losses or find someone to rent the property and use it as a buy and hold.
Chris Seveney that is what I am thinking too. I will try to sell it to that guy bidding with me. If not, I am just going to keep and rent it out.
you do actually have several options
first you need to have a title company get the loan number and call the bank for a payoff $ on the loan...this will give you the exact $ you need to make an educated decision.
once you know the exact $ amount you will know whether to sell or hold...if the current mortgage is current as you say the number maybe low enough to get out of the deal without losing money if it is truly worth $150-$160 and it would take no more cash out of your pocket because you wouldnt have to settle the first mtg until closing and that would be taken out of proceeds from title company at closing
@Charles Campbell I checked the title already and talked to 1st today. The remaining principle is 95K. Going to check the exact value of this condo tonight. Didn't think anybody would buy a house with title issue. You really give me an option. Thank you very much!
Subordinate thru loan stripping
Originally posted by @Sophie Yin:Hi all,
I am new in this area. I bought my first house this month without enough knowledge. It seems like I put myself in one of most complicated cases now...
I bought this condo on auction in front of county court house this month. It was a second lien. The bid started at 25K, I bought it for 56k. There was another guy there bidding with me. The first mortgage is 96K after about 10 years of payment, the loan's status is current, it had been paid until Jul. The first lender is Ocwen.
The condo is worth about 150k-160k. The outside of the building looks good. Have not seen the inside. For now I know the paint needs to be done in the condo and AC needs to be replaced.
Now I have several questions,
1. I want to negotiate with Ocwen for a discount on the payoff. In that way, I would not buy it exceeding the market value. But I don't know how to do this. Is there anybody knows about Ocwen, their regulation and how to do this?
2. I talked to an attorney, I was told I was the owner of the condo after I got the Deed. I haven't got the Deed yet. Is there anything I need to do to secure myself as the owner? Somebody told me to let the owner sign a quit claim deed, what is that for?
Hi,
I am in the same circumstances in Georgia. Bought a house at an auction requested by a junior lien holder. There is a first mortgage and (and other liens) on the house. Would you please tell us what you end up doing?
#2 Foreclosures Contributor
- Paradise, CA
Originally posted by @Ed Tamayo:Originally posted by @Sophie Yin:Hi all,
I am new in this area. I bought my first house this month without enough knowledge. It seems like I put myself in one of most complicated cases now...
I bought this condo on auction in front of county court house this month. It was a second lien. The bid started at 25K, I bought it for 56k. There was another guy there bidding with me. The first mortgage is 96K after about 10 years of payment, the loan's status is current, it had been paid until Jul. The first lender is Ocwen.
The condo is worth about 150k-160k. The outside of the building looks good. Have not seen the inside. For now I know the paint needs to be done in the condo and AC needs to be replaced.
Now I have several questions,
1. I want to negotiate with Ocwen for a discount on the payoff. In that way, I would not buy it exceeding the market value. But I don't know how to do this. Is there anybody knows about Ocwen, their regulation and how to do this?
2. I talked to an attorney, I was told I was the owner of the condo after I got the Deed. I haven't got the Deed yet. Is there anything I need to do to secure myself as the owner? Somebody told me to let the owner sign a quit claim deed, what is that for?
Hi,
I am in the same circumstances in Georgia. Bought a house at an auction requested by a junior lien holder. There is a first mortgage and (and other liens) on the house. Would you please tell us what you end up doing?
I'm confident they ended up paying off the senior lien holder or, they lost the property, if they didn't sell it to pay off the senior in full first.
@Sophie Yin:I'm curious, what was the outcome of this deal.