Working on this one for just over 60 days and have managed to get the 1st to contribute $3K, Seller $6K and Buyer $6K but can't get the 2nd to budge from wanting $24K. Seller is willing to take a small unsecured note to close the deal but wants a complete waiver for any liability from the 2nd.

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How far away are you from sheriff's sale?
He just received an NOD at the beginning of the month so we're at least a couple of months away from a trustee's sale at this point.

Kathy Toth said:
How far away are you from sheriff's sale?
I had great luck with Wells Fargo, I happened upon a supervisor via email. Have you followed up with the supervisor for Wells Fargo typically the contact person is in the body of the email from your assigned negotiator.
Unfortunately, no email from this particular negotiator but she does call me direct on a regular basis. I've tried to escalate above her with no success and have sent (2) letters to various Wells Fargo execs with no response (this has worked in the past with SunTrust Mortgage.

Carrie Haymond said:
I had great luck with Wells Fargo, I happened upon a supervisor via email. Have you followed up with the supervisor for Wells Fargo typically the contact person is in the body of the email from your assigned negotiator.
Roger, I just negotiated 9 cents on the dollar with the 2nd from Wells Fargo. What is the sellers position when he/they purchased? Did he/they qualify? Was there wrong information that the seller didn't know about when he financed? Is this a refinance? What was the refinance for? All those come into play with Wells Fargo. I had a great conversation with one of their people today who shared some huge insight. The bottom is, did your seller qualify for the loan to begin with or was it a bad loan from the start?

Also, I negotiated with them an interest only even though he is over 6 months behind and he makes a payment (fraction) to the bank and that keeps him out of hot water.

Barb Van
From my experience, that seems like a small contribution from the 1st. Your buyer and seller contributions are quite in line with my experience. I would go back to the 1st and work on increasing the 1st TD contribution. 3k seems extremely low.
Many if not most 1st TD holders will pay 10% of 2nd TD outstanding balance (or up to 10%) as their contribution to the short sale. The 2nd TD holder will not typically "settle" for less than 10% of their outstanding loan balance. You can try for less but it is tough if you want a full release..They will of course continue to try for 20%, 30% and 40% depending on the type of loan, the seller hardship and the deficiency status of the loan...but the 2nd should eventually settle for around 10% of outstanding loan balance. Of course, every short sale is unique and different...
Thanks for the feedback. Since the 2nd will only agree to a $24K pay off amount it's now it's just a question of getting the 1st to come up to $12K on their side.

Cheryl Bray said:
Many if not most 1st TD holders will pay 10% of 2nd TD outstanding balance (or up to 10%) as their contribution to the short sale. The 2nd TD holder will not typically "settle" for less than 10% of their outstanding loan balance. You can try for less but it is tough if you want a full release..They will of course continue to try for 20%, 30% and 40% depending on the type of loan, the seller hardship and the deficiency status of the loan...but the 2nd should eventually settle for around 10% of outstanding loan balance. Of course, every short sale is unique and different...
Roger..there seems to be no rhyme or reason to how these banks operate. I've had the 1st TD agree to a 10% payout to the 2nd TD without me even asking! They just offered right along with their short sale approval...! Sometimes it happens like that and then sometimes you get them offering diddly squat and you have to WORK them over to get them up to speed on reality. If they have offered 3k and approved the short sale, they want the short sale to go through. But they are definitely playing hardball.

Roger D. Cummings said:
Thanks for the feedback. Since the 2nd will only agree to a $24K pay off amount it's now it's just a question of getting the 1st to come up to $12K on their side.

Cheryl Bray said:
Many if not most 1st TD holders will pay 10% of 2nd TD outstanding balance (or up to 10%) as their contribution to the short sale. The 2nd TD holder will not typically "settle" for less than 10% of their outstanding loan balance. You can try for less but it is tough if you want a full release..They will of course continue to try for 20%, 30% and 40% depending on the type of loan, the seller hardship and the deficiency status of the loan...but the 2nd should eventually settle for around 10% of outstanding loan balance. Of course, every short sale is unique and different...
Roger,
I know that is the last resource to use in this cases, but is your seller willing to sign a promosiry note for the remaining? I mean the balance tha the 1st liend holder does not want to contribute to cover the 2nd? you need to know all your pieces before you do your last move. sometimes 2nds are tough, is the 2nd insured? if not, if the home goes to foreclosure sale the 2nd does not get anything, so why be so tough?
Ray,

I just received a call from the office of the president at Wells Fargo Home Mortgage yesterday regarding this deal. Since I had escalated this via email and a couple of letters to key executives I guess someone is paying attention now! They are going to work with me direct to get the 1st approval based on the terms that the 2nd is demanding. FYI, my client was willing to sign an unsecured note as a last measure but hopefully this will now be approved as it stands.

-Roger

Ray Saenz said:
Roger,
I know that is the last resource to use in this cases, but is your seller willing to sign a promosiry note for the remaining? I mean the balance tha the 1st liend holder does not want to contribute to cover the 2nd? you need to know all your pieces before you do your last move. sometimes 2nds are tough, is the 2nd insured? if not, if the home goes to foreclosure sale the 2nd does not get anything, so why be so tough?
Roger, you mind sharing the email addresses you used?

William

Roger D. Cummings said:
Ray,

I just received a call from the office of the president at Wells Fargo Home Mortgage yesterday regarding this deal. Since I had escalated this via email and a couple of letters to key executives I guess someone is paying attention now! They are going to work with me direct to get the 1st approval based on the terms that the 2nd is demanding. FYI, my client was willing to sign an unsecured note as a last measure but hopefully this will now be approved as it stands.

-Roger

Ray Saenz said:
Roger,
I know that is the last resource to use in this cases, but is your seller willing to sign a promosiry note for the remaining? I mean the balance tha the 1st liend holder does not want to contribute to cover the 2nd? you need to know all your pieces before you do your last move. sometimes 2nds are tough, is the 2nd insured? if not, if the home goes to foreclosure sale the 2nd does not get anything, so why be so tough?

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