Posted by Ben_WA on May 10, 2008 at 17:52:57:
In Reply to: Re: Sub2 and Mortgage Discount with Countrywide posted by Bank Negotiator on May 09, 2008 at 17:14:42:
I've decided to pass on this deal. After reading what you've said and after talking to other investors in my area, getting a big enough discount (or a discount at all) on the second will be very difficult, especially since both notes are with the same bank. With the market being as unstable as it is, even if I could get a discount on the second, the first is still too high to make it a good investor deal, as prices could continue falling.
The only other purchase option I really have is to try for a short on both loans. The problem with this avenue is that there is this nasty new distressed property law here in Washington State that goes into effect on June 12th, which essentially makes investors in pre-foreclosure deals fiduciaries for the homeowner. From what one experienced investor/agent told me, short sales signed up now but not completed until after June 12th will put the investor in that fiduciary category. Of course, the chances of getting a short done in a month are slim, so I pass.
Ben