Sub2 and Mortgage Discount with Countrywide

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Posted by Ben_WA on May 09, 2008 at 00:19:06:

I was contacted by a seller who's one month behind on his payment and is a week from being two months behind. He has both a first and a second mortgage with Countrywide, so I was planning on purchasing the second and taking the first sub2. So, I have a few questions:

- Does it make any sense to attempt to buy the second, since Countrywide holds both mortgages?

- Would Countrywide entertain any kind of discount, since he's currently only 1 month behind?

- If I decided to wholesale this property, what are the logistics of having the buyer buy the second and take the first sub2, assuming I can reach an acceptable agreement with the bank that makes the deal worth doing?

Deal Numbers:

ARV - $230K (got comps from a realtor friend)

1st mort - $186K (Seller says it's around 6%. Looking at the deed of trust online, it appears to be fixed).

2nd mort - $45K (Seller thinks it's an 11% adjustable)

Repairs - Seller says the property's in excellent shape - I figure $5K tops

It's not the greatest of deals, but the interest rate on the first is nice, assuming it's fixed.

Thanks,

Ben

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