Nationpoint & First Franklin

I have a short sale involving First Franklin and Nationpoint.

Does it make sense that Nationpoint originated this loan and they loaned 40k and then First Franklin loaned 159k as the second???

I haven't run into this before.

I'm stumped as to why Nationpoint would care about FF going down when Nationpoint only has 40k in it?

Technically, we will not be shorting Nationpoint.
The home is worth $175k (remember Nationpoint is the first mortgage FF is the second.)

So, should I just skip over Nationpoint and start dealing with First Franklin?

Is it really possible that Nationpoint is the first?

 

They are definitely the Lender my client approached when looking to buy a home & Nationpoint is where they signed all the loan papers.  This was originally an 80/20 loan ARM. In the loan papers it says Nationpoint is a balloon and FF is an ARM.

 

 I've just never seen a scenario where the first lender is in it for so much LESS (from origination) than the second lender.


Please HELP!

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Permalink Reply by Sam Purtle on March 1, 2010 at 4:23pm
Mary

In all my years I have never seen where a 1st has a 40K lien and and 2nd has $159K. Are you sure? there might be an subordination filed. Liens are superior by recording date and time. I would definately check with the title company on this one as it sounds really out of the ordinary. An 80/20 loan indicates an 80% 1st and a 20% 2nd. Most loans are bought and sold on wall street, so they may have sold their first loan to First Franklin and kept the 2nd (or what you think is the 1st)
Let us know what happens.
Permalink Reply by Mary Wilcox on March 6, 2010 at 7:33pm
Thank you so much for that info. I am waiting on title work right now. I got the information on this home from our county website. And seriously, these people got robbed so bad I had my mouth hanging open for most of the interview. I'm not "sure" of anything yet. I will definitely let you know. I think I'm going to need help on this one. Big time...

Sam Purtle said:
Mary

In all my years I have never seen where a 1st has a 40K lien and and 2nd has $159K. Are you sure? there might be an subordination filed. Liens are superior by recording date and time. I would definately check with the title company on this one as it sounds really out of the ordinary. An 80/20 loan indicates an 80% 1st and a 20% 2nd. Most loans are bought and sold on wall street, so they may have sold their first loan to First Franklin and kept the 2nd (or what you think is the 1st)
Let us know what happens.

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