Just got the short sale from *^%%. MULTIPLE liens. City taxes, state taxes - which are priority, and then there is a citibank card lien for $15,000. The property value is $97,000 via appraisal done. LITERALLY the NET to Ocwen if they allow all payouts is $30,000. They will NEVER take that, so I'm going to try to negotiate some of these. There is a second lien holder LCS financial - that will take 10% of loan balance, but seriously I feel like 10% is too high for the citi bank lien.
What do you guys offer the little lien holders?
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How will we ever spark a movement within our communities if we can't properly educate and mentor others who want to learn and be great in this niche of real estate? Can you really assume every new agent who's doing a short sale outsource it out to a 3rd party and that would be the most beneficial thing for all parties?
Cmon you know that's not right and nobody should be able to not ask questions here no matter how simple it may be to others. I just posted "curious about others ss approval timeframes" so would you automatically think I'm a rookie by the question or would you be surprised to hear I have about 30 approvals in the past couple months?
Asking questions sparks conversations which lead to the mind thinking of new and innovative ideas on how to get things done. I welcome your value and experience in helping me get to world class!!
While it is true that I am new to this site, and many questions are good ones, this still seems like a rookie question. Sorry. If the question of how much should credit care liens be paid in a super lien state, I would respect that. In any case, this type of lien would not be a super lien.
A better question is what are you trying to accomplish with this lien, a settlement or a release. Our aim would be to get a release. In a foreclosure, the lien, but not the judgement would be released. Since there is no equity, and the debt is not associated with the property, we find that getting a release is easier. Sometime we get some funds, paid POC, to settle the debt completely. With the $1,000 coming from the 1st, and the serious lateness of the debtor, we find that if the debt holder will generally settle the who amount for 10-20% of the total amount due. If the owner of the property is using the short sale to get their financial affairs in order, this can be part of a package. However, if the property owner is a step from bankruptcy, but wants to avoid having both a bankruptcy and a foreclosure on their credit history, getting a promissory note, will make little difference.
I respect what I have seen from Jeff Payne. He is worth listening to. I did not recommend that any party use our firm. Nevertheless, I will stop posting. We just have a difference of opinion.
On other posts the difference of opinion is between what should happen in a perfect world vs. what should happen on this earth. While this site should be a forum of pros and people trying to learn, I think there is too huge a gap between those who are superstars and those who are pretending to be professionals. All a pro should try to be doing, in my opinion, is to put all parties in the best position possible knowing that all parties are going to lose something.
Ed,
Don't judge the site by it's name. There are newbies, and many others in the mix on this site. Telling someone they are a "rookie" or have no business negotiating just hinders people's learning experience. People come here to learn and gain knowledge from others, and oh ya, we bounce ideas off each other, and see how others approach a situation. I go for 10% on my 3rd liens (or get the full payoff depending on the situation), but I am trying to ascertain if others have had success getting less in a low property value situation.
There definitely is a gap between those with the knowledge to successfully complete a short sale and those that don't, and woudn't it be great if those seeking advice from this site got that knowledge for us to close the gap? Don't you think that's "in the best interest" of any homeowner?
I don't think we had a "difference of opinion" in our answers on what we pay to 3rd party lien holders if you read my post. It seems we are doing the same thing, but we definitely have a difference of opinion on how to respond to people who are trying to collect information or polling peers. I don't wish you to stop posting, especially if you can offer useful advice in a respectful manner, but if you're going to approach other "newer" members of this site in the same manner, you will be alienating members and that's not what this site is about.
The answer is at most $1,000. What your question really shows, however, is that you clearly do not have enough knowledge or experience to negotiate a short sale.
In the net you give, all junior lien holders are apparently getting a 100% payout. The city and state taxes have a priority over the first mortgage and will have to be paid in full. If there were to be a foreclosure they would get paid before the first mortgage holder. A credit card lien is not a mortgage. It was originally an unsecured debt, that sued and got a judgement. If is at the bottom of the priorities. With your level of experience, you need to farm this file out to a pro if you want to close this file.
Sorry to be harsh, but you have a fiduciary duty to your client. If you cannot be reasonably expected to successfully negotiate the file, you should find someone who can. This way you can get your client out of trouble, get paid, build up your reputation, and ask questions of how and why the account is handled. I would appreciate it another short sale pro would weigh in on inexperienced agents should farm files out.
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