Forest Grove Short Sale Case Study #1

Location: Rental Property in Forest Grove OR

Total owed: $227,000

- 1st Mortgage Owed: $162,00

- 2nd Mortgage Owed: $65,000

Owner had the property For Sale By Owner 240+ days at $210,000 before we got involved.

We started off the listing at $175k.  Our initial offer came from an investor partner of ours.  His offer came in at $122k, which would leave him with a) cash flow property or b) plenty of room to negotiate make a profit if he flipped the property.   While we were negotiating this offer, we had a new offer come in more in line with what the banks wanted.  The investor decided to back out, leaving the property to the new offer.

Everything was lined up with the first lien holder.  Our biggest hurdle came when the owner of the 2nd mortgage started giving us the run around.  They told us the loan had been sold and nobody knew where it was!  With great determination we finally tracked down who had the loan… The first person we had talked to!  With that out of the way it was (almost) smooth sailing from there.

In most short sale situations, the 1st mortgage will tell you how much they are willing to let the 2nd mortgage take.  The 2nd wanted wanted close to $13,000 for a pay off.  The 1st said they would only allow them to take $3,000.  Now, most agents would give up at this point.  We were 3 weeks from foreclosure and $10,000 apart.  Not us though, we were able to negotiate the 2nd to take $6,500 with approval from the first.  This is not typical but it can be done!

So here are the final numbers:

Client owed $162,000 on the 1st mortgage they accepted $145,420 ( $16,800 LOSS)
And owed $65,000 on the 2nd mortgage they accepted $6,500 ($58,500 LOSS)
Total Owned $227,000. Total Discounted Amount $75,300.

If you can’t get your short sale property closed, don’t hesitate to give us a call.  We have an expert team that gets the job done!  We would love to make your story the subject of our next case study!

Coastal Mitigation Partners
503-265-9553