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Permalink Reply by Harry Clay on July 21, 2011 at 11:00pm

That sounds like a collection scare tactic to me.

I doubt that your clients starving themselves to make one more payment isn't going to make WESCOM like them, or treat them any better, in the long run.

If WESCOM is determined to go after a deficiency judgment, aren't they going to have to file an NOD first?

It seems to me, since CA law says benficiaries only get one bite at the apple, WESCOM is waiting for the big boy (lien #1) to file first.

Now's your time to pull in the highest & best offer you can, & present it to both the lenders for their consideration.

Ultimately, WESCOM can play the spoiler, if they so desire. But right now, they're bluffing your clients.

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Permalink Reply by Kimberley Kelly on July 22, 2011 at 10:49am

Right on Harry!  Ignore them, and definately do NOT have your Sellers send them any more money.  If they want to hold up the Sale, after the 1st lienholder has agreed, they will.  At that point, you will need to negotiate what they will take as a settlement.  HELOC's are not going to go away, so better to deal with it during the Short Sale process...

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Permalink Reply by Jennifer Garrell on July 22, 2011 at 11:18am

Thank you so much :-) I have another question now. Can the Credit Union charge off the HELOC before the NOD is filed? I am curious if since a HELOC with a credit union if they have another set of rules. Sorry if is a stupid question. Thanks again all :-)

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Permalink Reply by Harry Clay on July 22, 2011 at 11:40am

I think you probably need to speak with a RE attorney for the definitive answer.

When it comes to junior position recourse loans, if the lender refuses to cooperate, bankruptcy protection is often around the corner.

Letting WESCOM know you're investigating all your legal options may induce them to be more cooperative & negotiable.

 

Jennifer Garrell said:

Thank you so much :-) I have another question now. Can the Credit Union charge off the HELOC before the NOD is filed? I am curious if since a HELOC with a credit union if they have another set of rules. Sorry if is a stupid question. Thanks again all :-)

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Permalink Reply by Kathleen Couch on July 22, 2011 at 1:00pm

This is something that can be used by any bank.  If it goes to charge off, you are in much worse of a negotiating position with the 2nd.  Do whatever can be done to avoid the file being in charge off.  In charge off they do not need to follow typical rules.  They may ask for 50% of what is owed as minimum payoff.  It may be to get more money on the second, but unfortunately your client is at their mercy, because of being delinquent on the debt.  This can even be asked for on a HAFA short sale.

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