Anyone have a contact for escalation at Nationwide Credit (NCI) they took over the 2nd lien from Ocwen, its charged off.
Onewest has allowed only for 10% and NCI will only lien release for 20%. I'm at a standstill....its not a Fannie 1st nor HAFA...
...I can't collect the money from the buyer or seller as a POC...
...I'm tempted to tell the seller to CH.7 it but that's not an answer right now....
....is there a way around this?
You say you can't collect the balance POC. Why mention POC, is there a "no other contribution" restriction from the first? Is anyone willing to contribute?
Anyone can "pay down" the second in advance by 10%, with the second then issuing an approval letter for 10%. The initial payment would not have be listed as POC, but there may be risk of losing the 10% if the sale doesn't close.
Never allow a paydown other than at the closing table. If a "relative or friend" is willing to pay down then have that done at the closing with all docs and agreements in place at closing. ALL TRANSACTIONS take place a the closing ..always, especially if there is more than one lender!!! All kind sof things can go wrong before a closing is complete....there are even cases where closings have been reveresed.....so all transactions need to be based on the same closing so that they can all be reversed if that happens.
I have no idea how much other debt your client may have, therefore BK could be an actual good thing for your client. If your client is actually insolvent beyond the property, there would be BK after the short sale, then I would defintitely use that as a negotiation.
1. Your client is insolvent.
2. Client is in foreclosure(?)
3. Client will still be insolvent after FC.
4. the lien is second position and the property is upside down (I assume).
5. They will get nothing in foreclosure, and lien will release leaving only unsecured debt and then that debt wiped or punched to percentage of total debt to asset ratio, which is a LOT less than 10% of the second.
6. if lien is not released you have been told that clients attorney suggests BK
7. if BK, regardless of FC, the property is upside down and the debt will be released as personal and then wiped under BK.
do they really want to risk 10% in hand against zero income and paying legal expenses? Are they sure that is in the best interests of thier investors?
IT depends on the goals of the client and other factors...the total amount of debt, how much defieciency will be released in the short short sale vs other ways, and if not SS in the FC and or BK.
Regardless of anything, if the client has a lot of other debt besides the house, or a lot of deficiency in the house, then the BK will become the end result for the client resolution, espeically as far as your negotiation is concerend....the client has to be willing and all on the same page. The issue for the second holder becomes "take the 10% or get nothing later", ever..
If there is enough debt that it will help the seller to BK then the argument to the second is take 10% or get nothing, ever or the percentage of his debt to asset ration of the BK...usually not much. That is a very sharp negotiation tool. Please note, even if they took 10% and kept right of deficeincy, they will not get any more than the 10% ever if a BK is eminent.
The good part is that IF the second agrees, then it is possible to negotiate all other debt and pay less than 10% (probably 5-10%) on any debt.....saving the client from BK. IT creates options later.
You're full of excuses...how bout some brain storming here?
I agree, however most of the files that I see will be a BK7 if pushed to it. As I understand, under BK 7 if the property is upside down there can be a punch down and the second removed if no value above the first exists. The second pecomes personal debt and then is subject to percertnage of estate. Both loans become uncollectable generally speaking.
I agree that a lot of assumptions are made here. All of them based on the persional experience and or knowledge of the professional making response. I do find many responses totally different from mine that are in fact just as correct, but from taht person's business style.
Many files that I see have statements like "will deliver closign documents wihtin 48 hours of receipt of acceptance letter of the second mortgage". When that letter is delivered, a new email "the documents and information have been submitteed to the holder (lender whatever) for approval. You will be notified upon decision". The first is a contact and agreement. The second is a reneg and violates all kinds of law.
Fully document ANY deviation from the agreements and contracts and make sur eyou are willing to HOLD the negotiatot to them....the negotiator is an AGENT and has made the agreement already! THat is just my way...others think they should capitulate to the renegotiation.
I have discovered that when a bank says it wants 20%, it will typically negotiate. You might be able to push them down to 12% to 15%. Sometimes, that little incremental difference is what pulls the deal together. I've had banks demand $30,000 when they were offered $3,000 and then finally settle for $5,000.
Also, if you find the bank absolutely will not budge, then you need to change buyers. You owe that to your seller. Find a buyer who will pay what the bank wants. That's easier than letting the deal blow up.
Is the additional 10% available from either buyer or seller? If it is then all you have to do is figure out how to get it to the lender. This can done prior to or at closing.
If you need it to be taken from the proceeds of the sale then you just have to negotiate as hard as you can to make it work. Have the borrower call the lenders direct to lead their case. Maybe they can sort something out post closing with the credit union.
the 1st lender stated no other contributions will be permitted.
I'm trying the Ocwen Omsbudman contact to see if there is anyway they can help...the 2nd's rationale is that the 1st is receiving a generous payout relative to the principal balance and they are getting shafted....ummmm, yes that's why you're in the 2nd position taking that risk....I don't see how they can kill a deal and leave that money on the table when they'll get nothing at repo