Understanding the Equity caculation


#1

I bought my last flip at foreclosure, but hired (at a crazy fee) a company to help me acquire it.? So now I’m going after the next one on my own.? After reading everything I can find in the tutorials, I have a fundamental question stumping me that I hope one of you “pros” can help me out with.

If the foreclosure was filed by the 1st lienholder, the 2nd will be dismissed.? So why when ForclosureRadar figures equity dothey use as a loan amount both outstanding liens?? In the attached example it seems Equity would more accurately be the Value minus the Published Bid.? Am I missing something basic here?

Sorry to be so dense, but thanks a ton for any clarity you can shed.? Good luck with all your acquisitions!

[URL=[http://imageshack.us/photo/my-images/577/questiond.jpg/]http://img577.imageshack.us/img577/3096/questiond.jpg[/IMG]/URL]


#2

Douglas -

ForeclosureRadar shows the current estimated equity of the homeowner in Foreclosure, which is the combined loan amounts of all open loans that we estimate are still outstanding. ?