Short Sales: How To Make Big Money With 2nd Mortgage Short Sale Deals

Hey D.C. Here,

Some of the most profitable short sales I’ve ever done were a direct result of big 2nd mortgages. This is because of the huge discount 2nd mortgage holders are willing to accept because they’re in a junior position and will not get anything if the first mortgage forecloses on the property. They will be wiped out and get nothing. It’s very common for my negotiators to get them to take 5-10% of the mortgage balance on a 2nd mortgage.

This means if they are owed, 252,000 on a 2nd mortgage, the lender is willing to take 5-10% of the balance which will end up being somewhere between $12,600 and $25,200. You just created $226,800 out of thin air. Luxury homeowners are willing to sell for what they owe because they know they have no equity so they’re much easier to acquire than luxury homes that have equity. When a luxury homeowner has equity, they want to get the $$$ for that equity. When they don’t have any equity, they know they don’t have any other options except for a short sale.

To find out how to make huge 6 figure profits on over-leveraged luxury homes while 100% of the work is done for you, join me on my webinar tonight and I’ll explain everything:

Join me here:

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Now, housing analysts are drawing more attention to one big problem that’s making loan modifications less successful and drawing out efforts to pursue short sales and other foreclosure alternatives: The presence of second mortgages such as home equity loans and lines of credit.

Today’s Heard on the Street in the WSJ concisely explains why there’s a problem: Second mortgages stand behind the first lien and are supposed to take the first loss in a modification or short sale, and in the event of a foreclosure, they’re likely to be worthless, particularly if the home is underwater. Karen Shaw Petrou, an analyst at Federal Financial Analytics, concludes that most second mortgages “are nothing but air” because of big home price declines.

Second mortgages are held primarily by banks, and writing down seconds en masse would cause substantial losses at a time when banks are trying to boost their weakened balance sheets. Of some $1.05 trillion in second mortgages, $963 billion are on the balance sheets of commercial banks, savings institutions and credit unions, according to Amherst Securities, and around $442 billion sits with the nation’s four big banks.

But most modification activity centers on first mortgages, which are held by both banks and other mortgage investors, including government-owned mortgage-finance giants Fannie Mae and Freddie Mac.

Second mortgages are also a big stumbling block on short sales done by real estate agents without investors involved, where the borrower sells the home for less than the value of the amount owed. Real-estate agents have complained for months that many of these deals fall through because the second-lien holder isn’t willing to approve the deal, or is requiring more money from the transaction.

With my system of working with real estate agents, we can easily get these deals done that agents cannot get done because of the away we structure our deals. Its much more flexible than the way real estate agents do short sales. We pre-negotiate the short sale and we close 5 times more deals that realtors because of our pre-negotiation strategy.

Discover my entire system on tonight’s webinar.

Register Here:

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Talk to you tonight,
DC

P.S. This may be the last time I do this webinar in a long time, so don’t miss it because this is your last chance to get the chance to partner with me on your deals. My professional negotiators will negotiate all of your short sales for you.

Find out how to partner with me on your deals tonight at 9:00 pm ET here:

www.dcfawcett.com/go

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