Replies to This Discussion

Permalink Reply by Jeff Payne on November 3, 2010 at 7:18am

Sharon, do you know who the investor is on the first? How much are they asking for in a prom note?

Permalink Reply by Sharon Paxson on November 3, 2010 at 7:27am

Hi Jeff - they are asking for $775K or cash contribution of almost $400K at close. I have tried to find out who the investor is, and will try again with the negotiator.

Thanks for any suggestions.


Jeff Payne said:

Sharon, do you know who the investor is on the first? How much are they asking for in a prom note?

Permalink Reply by Jeff Payne on November 3, 2010 at 7:36am

really? IS there something that makes them think your seller can pay this? I had one with another lender, they asked for $650,000 prom note and we got it down to a $15,000 cash contribution and the buyer paid it. They will tell you that they can not release investor information but legally they have to. You may have to have the seller send them a Qualified Written Request (QWR) to find out who the investor is.

Sharon Paxson said:

Hi Jeff - they are asking for $775K or cash contribution of almost $400K at close. I have tried to find out who the investor is, and will try again with the negotiator.

Thanks for any suggestions.


Jeff Payne said:

Sharon, do you know who the investor is on the first? How much are they asking for in a prom note?

Permalink Reply by joe beauchamp on November 4, 2010 at 11:43am

You may have different factions in here - the investor, the MI and it sounds like not very useful negotiators. Chase down the MI and the investor. I have found the MI usually to be intelligent and reasonable where the negotiator is just screwed up. I have explained and pointed out numbers and asked questions. Why do they think the seller can afford this note? "He just bought a car", "this is the only account behind on his credit", "lots of cash goes through his checking account", etc. Once you find what they are basing it on (and BOA negotiators are pulling it out of their... they rarely bother to actually check), then you know what you have to deal with. They are right or they are wrong. When you can point out that they are wrong, they usually back off.

Investors? I can't say much - with someone's suggestion intially, I tried FNMA - I tried them several times. I really don't know why they are employed except as relatives of politicians. They care so little about the taxpayer money, a great deal mishandled, etc. And I cannot say about other investors - I'm guessing all gov't ones are that way - they don't care, they work their 3 hrs/day with tons of holidays, vaca and benefits and all they have to do is talk to someone on the phone from time to time and get them off of their phone. They don't have to DO anything.

Go for the basics - why do they say that, who is responsible for saying that - bypass WF and talk directly when you can.
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With the seller, I start by wondering how it is that he is in a bad spot but not bad enough to be willing to sign a note. So, he has $$ and doesn't want to pay back some of what is owed to the bank. OK... Sounds like he should be signing a note. If he is dead broke, sure, sign the note then do a BK and blow it away. I don't know of much middle ground there.

I have gotten payments lowered and one MI offered to move the 1st payment out 6 months. So, don't assume the hard hit up front, either. You have some leeway to make it easier - and they are at 0% - and the rest of the debt goes away.. I'd like to have my credit cards and accounts at 0% interest.... So, if you have to go down that path, you can create choices.

And, your seller can probably later go to the bank with a smaller cash payment than the whole note to make the cost even less - don't forget that.

Permalink Reply by Jeff Payne on November 8, 2010 at 2:44am

Joe, good point, there is something that they "think" the seller has or can do to make this payment. I had one that said, the seller has good credit, he can afford it only to find out that the lender that said the seller had good credit was NOT reporting that he had not made a payment in 6 months to the credit bureau. The same seller bought a house in California for 1.3 Millions during the boom years and it is now worth $300K at best and the negotiator automatically thought that the seller was wealthy because he had a 1.3 million dollar mortgage.
ALWAYS, ALWAYS question them when it is obvious that they can not see the big picture

joe beauchamp said:

You may have different factions in here - the investor, the MI and it sounds like not very useful negotiators. Chase down the MI and the investor. I have found the MI usually to be intelligent and reasonable where the negotiator is just screwed up. I have explained and pointed out numbers and asked questions. Why do they think the seller can afford this note? "He just bought a car", "this is the only account behind on his credit", "lots of cash goes through his checking account", etc. Once you find what they are basing it on (and BOA negotiators are pulling it out of their... they rarely bother to actually check), then you know what you have to deal with. They are right or they are wrong. When you can point out that they are wrong, they usually back off.

Investors? I can't say much - with someone's suggestion intially, I tried FNMA - I tried them several times. I really don't know why they are employed except as relatives of politicians. They care so little about the taxpayer money, a great deal mishandled, etc. And I cannot say about other investors - I'm guessing all gov't ones are that way - they don't care, they work their 3 hrs/day with tons of holidays, vaca and benefits and all they have to do is talk to someone on the phone from time to time and get them off of their phone. They don't have to DO anything.

Go for the basics - why do they say that, who is responsible for saying that - bypass WF and talk directly when you can.
----------------
With the seller, I start by wondering how it is that he is in a bad spot but not bad enough to be willing to sign a note. So, he has $$ and doesn't want to pay back some of what is owed to the bank. OK... Sounds like he should be signing a note. If he is dead broke, sure, sign the note then do a BK and blow it away. I don't know of much middle ground there.

I have gotten payments lowered and one MI offered to move the 1st payment out 6 months. So, don't assume the hard hit up front, either. You have some leeway to make it easier - and they are at 0% - and the rest of the debt goes away.. I'd like to have my credit cards and accounts at 0% interest.... So, if you have to go down that path, you can create choices.

And, your seller can probably later go to the bank with a smaller cash payment than the whole note to make the cost even less - don't forget that.