Replies to This Discussion

Permalink Reply by Wendy Smith on July 15, 2010 at 12:05pm

10% to release the lien, negotiable to release liability - presuming junior lien is LOC. 25% of balance for full release is easily obtainable.

Permalink Reply by Wendy Rulnick on July 15, 2010 at 12:08pm

Hi Wendy - What is LOC? Thank you for your reply!

Wendy Smith said:

10% to release the lien, negotiable to release liability - presuming junior lien is LOC. 25% of balance for full release is easily obtainable.

Permalink Reply by Kent Dills on July 15, 2010 at 12:10pm

LOC is Line of Credit. So it's not a purchase money second lien but more like a cash out refinance as far as I understand.

Permalink Reply by Wendy Rulnick on July 15, 2010 at 12:10pm

Thanks, Kent :)

Kent Dills said:

LOC is Line of Credit. So it's not a purchase money second lien but more like a cash out refinance as far as I understand.

Permalink Reply by Wendy Smith on July 15, 2010 at 12:12pm

Many 2nds (80/20 piggybacks) are actually LOCs though many borrowers do not realize.

Permalink Reply by Katerina Gasset on July 15, 2010 at 2:30pm

Oh, we call those HELOCs.

Permalink Reply by Debbie Franklyn on July 15, 2010 at 6:39pm

I recently handled a short sale with B of A as junior. Amount owed was under $79,000. Nego insisted on receiving just over $14,000. The first was Indymac and gave them $7834. B of A was insistent, finally seller participated in giving B of A $1000 more so they were satisfied.

Permalink Reply by Wendy Rulnick on July 16, 2010 at 1:44am

Debbie - Did they reserve the deficiency right? Or settle?

Debbie Franklyn said:

I recently handled a short sale with B of A as junior. Amount owed was under $79,000. Nego insisted on receiving just over $14,000. The first was Indymac and gave them $7834. B of A was insistent, finally seller participated in giving B of A $1000 more so they were satisfied.

Permalink Reply by Stephanie Lim on July 16, 2010 at 5:49am

Just got an approval from BOA HELOC for $3k to release lien. Far less than 10% of balance. Very, VERY strong deficiency language in the letter.