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Permalink Reply by Ben Benita on July 27, 2010 at 6:25pm

First thing to do, ask Triad what their coverage ratio is and to explain EXACTLY what is covered.....it may hold true that it makes mroe sense to just forelclose unfortunatley.....we always advise the agents we work with to find out if MI exists on the property and if so, to find this out early on (like who the Ivnestor is, if payments are current, will teh Selelr bring cash to close, LTOS of things to know early on)

If you get a positive response, try these lines:

"Sellers need cash to move"
or
"Sellers need cash to pay for security or first few months rent b/c their credit is now ruined"
or
"A prom. note payment will only cause them to fall behind on their other bills"
or
"Seller has spoken with their legal advisor and they were advised to just let the home go, and, get PAID to move out via cash for keys......they wanted to think it over a few days and keep living in the home for free while doing so"

Any of the above, or combination thereof will normally get you some movement.
If it were me, I would wait them out a week or two with some of the above excuses. I would also go up the food chain with Triad.

As you noted, they COULD just sign and not pay.....know that Tria will get VERY responsive to a reduced payoff if your Seller never sends them dollar one, then, 6 months later, makes them an all cash offer of maybe 5 cent son teh dollar (remember a prom. note is an unsecured note, VERY risky.

As you pointed out, BK is ALWAYS an option, but, I generally do not advise this unless the Seller needs "free time" in their home, has LOTS of other debts, and, very little income....

Just my 2 cents (actually that is more like a quarter's worth)!!!!!