I would recommend you talk with someone who actually does sub-2's. In the your Serrano, you have a limited time to attempt a Sub-2. If the NOD/ Les Pendens has been filed and if the Sale Date has already been set... the opportunity to reinstate is greatly reduced and you will have significant fees compounded on the original about owed including late fees, legal fees and court cost... often a huge % of the original delinquency.

By far the best opportunity in your Serrano is NOT a Sub-2... but doing a Short Sale.

In the Short Sale you can negotiate the acquisition price well below what the Strike Price/ Value will be. This way you can cut out the late fees, most if not all the other cost and if your good... a chunk of the mortgage amount owed.

We just completed a Short Sale on a property with $89,000 outstanding and over $21,000 in fees/ cost and $21,700 in second mortgages. We shorted the $21,700 2nd to $2,000 and shorted the $110,000 1st to $78,800. We will have about $7,500 in repairs and will probably keep it for cash flow ($750/mo) at least 18 months then sell at about $148,000.

This is almost ALWAYS a CASH type deal in Short Sales and Closing within a very short time... typically 48 hours or less.

While Sub-2 do work very well in some situations, Short Sales are almost alway a preferred way if you have the capital to tie up for the period you will be repairing/ holding/ marketing.

Key is to develop an investor database... very easy to do once you do a few of these Short Sales... these investors like to talk.

Reality check, short sale isn't for everyone and banks don't always accept them as you have described. It's a hit and miss.

So let me repeat the question that may have been overlooked.

Let's assume the bank doesn't accept your short sale package. Then what?

A bank that's going to consider a short sale where they give up 10-30% equity will also consider a sub2 sale. Why does it have to be one way or the other?

Jaber, sorry to inform you.... Banks don't get involved in a Sub2 sale.....

That is what Sub2 means... the buyer is purchasing the property Subject to the existing mortgage..

Hope you don't do Shorts either.....

You really should get a more functional understanding of these processes prior to using them or giving "informed" inputs to others about them.

Reality check, where did I say that banks would consider a subject 2? This thread is about notifying the bank of a sujbect 2. You know the one disclosed on lines 203 and 503 of HUD-1?

I don't think you really understand what you are talking about. REREAD my original question, and answer it please..

Don't edge the question and get right to
the point.

By the way I want to clarify that there was not a spelling error in "reality check."

Nobody is talking about a short sale here so don't confuse the issue. So lets get back to the orginal question pertaining to subject 2.