Quote:
Originally Posted by berettafan
Realtor friend of mine has two deals near closing in which banks holding 2nd mtgs will be coming up waaay short (as in $4k on $120k) if the deal is consumated. In both cases he expects the banks holding the 2nd to approve the deal!
A friend of his who works for a MAJOR bank said to him "if we could get even $1,000 towards a 2nd we'd jump on it".
Wow.
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Like said above, not surprising, and has always been the case. Most of the time a property goes into foreclosure, it is underwater (no equity in it). By the time the first trust deed holder forecloses, adds in all their principal, interest, late charges, fees, costs, etc., most of the time the foreclosure sale proceeds are not enough to leave anything left for the 2nd TD holder.
When that happens, the 2nd TD holder is wiped out. So anything is better than nothing.