Replies to This Discussion

Permalink Reply by Deidre St. Romain on January 24, 2010 at 11:26am

Other than a "commissionectomy" how DO you solve this as the 2nd lien holders seem to be getting real sticklers about demanding 10% or more to approve the SS. Has anyone here gotten past this all too prevalent scenario lately?

Permalink Reply by Beryl Gosney on January 27, 2010 at 1:21pm

Counter on the $3,000 and send it down to $1,000 ---- they start high and you go low....when they start turning, you inch up gradually..in 5 moves (3 for them 2 for you) you should have them where the 1st wants them....if not, let them pout for a while...10% is considered standard ----

If the above doesn't achieve the expected results, you have one more move left before you cycle again..Let me explain. Send the 2nd a summary of their net proceeds at $1,000, $3,000 and 10% of payoff.

Then show a calculation in your summary in terms of net to the 2nd lien holder at xxx cents on the dollar for a short sale versus foreclosure at ZERO cents lon the dollar .....Send that summary to the CFO and CEO of the 2nd and ask their help to esculate your short to closing....Warn them that the buy is getting tired of the charade and your seller is being pressure by attorney's to do a BK, which if either case happens, the 2nd losses 100% of their loan with no recourse! Now you're playing hard ball and they know it!

Permalink Reply by Mori Langshaw Sr on January 27, 2010 at 1:47pm

Beryl, what are you doing when the 2nd is insured @ 20%? They are subnitting claims to get 20% so why would they agree to 10%?

Permalink Reply by Larry Izenberg on February 15, 2010 at 4:20pm

If you think it is frustrating now, Wait until the new laws kick in this April. I had one the other day where the 2nd was with National City. Principal balance was $40k. They came back after 6 weeks and said this investor would not discount. They wanted $18,750.00 and the rest in payments. That's ridiculous.

Permalink Reply by Wendy Rulnick on February 16, 2010 at 1:54am

Mori - I always ask the seller. Although the sellers are in a bad financial situation, I've had them come up with some funds - somehow. They can withdraw from an IRA, they can borrow from a friend or relative. I've had them bring $1000 to $17,000 to satisfy junior liens. They are first in line, because they owe the money. The second is the buyer. If they love the property, they can contribute. Sometimes I see the firm stance of the junior lien gets a bit softer if they get a chunk of what they want, too.

Permalink Reply by Edward Codelia on February 22, 2010 at 6:43pm

I have an option that you may not have tried......email me......

Permalink Reply by Edward Codelia on February 22, 2010 at 6:47pm

I closed a 1st with BOA and a 2nd with AIG today.....BOA requested I get a release of $5000 from AIG on the 2nd in writing, after months, AIG issued the $5000 realease. BOA then approved the short with a $3000.00 pay off to AIG on the 2nd, needless to say, alot of F bombs were spewed and threats were made.....I went back and asked AIG to accept less, they refused and then advised they would rather see foreclosure anyway.......

Resolution was to adjust the fees and take a commission hit, however, this short sale is being reviewed by a Federal Agency because of all the crap.....

I could get into BOA attempting to increase the net after it closed today, but that may be for another board....

Deidre St. Romain said:

Other than a "commissionectomy" how DO you solve this as the 2nd lien holders seem to be getting real sticklers about demanding 10% or more to approve the SS. Has anyone here gotten past this all too prevalent scenario lately?

Permalink Reply by Mori Langshaw Sr on February 23, 2010 at 3:33am

What is your email Ed?

Edward Codelia said:

I have an option that you may not have tried......email me......

Permalink Reply by Deidre St. Romain on February 23, 2010 at 4:36am

Beryl: What about the "silent PMI insurers"? You know the ones that aren't regulated so you have no idea that they exist until it comes down to the wire...i.e. - investor paid, servicer paid and pooled. All these can elect to deny the SS because they will get paid in FULL if it forecloses.

Beryl Gosney said:

Counter on the $3,000 and send it down to $1,000 ---- they start high and you go low....when they start turning, you inch up gradually..in 5 moves (3 for them 2 for you) you should have them where the 1st wants them....if not, let them pout for a while...10% is considered standard ----

If the above doesn't achieve the expected results, you have one more move left before you cycle again..Let me explain. Send the 2nd a summary of their net proceeds at $1,000, $3,000 and 10% of payoff.

Then show a calculation in your summary in terms of net to the 2nd lien holder at xxx cents on the dollar for a short sale versus foreclosure at ZERO cents lon the dollar .....Send that summary to the CFO and CEO of the 2nd and ask their help to esculate your short to closing....Warn them that the buy is getting tired of the charade and your seller is being pressure by attorney's to do a BK, which if either case happens, the 2nd losses 100% of their loan with no recourse! Now you're playing hard ball and they know it!

Permalink Reply by Juan Reyes on March 26, 2010 at 3:23pm

I actually had a negotiator tell me that they would rather see the property foreclose just to stick it to the 1st since the values continue to fall they know that the home will be worth much less once the bank actually forecloses which in my state could be 10-12 months down the road if they have not initiated foreclosure yet.

He even broke it down for me.

Home was purchased for $450,000 on an 80/20

80% = $360K
20% = $90K

1st approved the SS at $280K with the 1st giving $9K to the 2nd. He said that they were losing 90% where the 1st was only losing about 25% and they would not release for less than 20% and would not take a promissory note. That is when he told me that they would rather see it foreclose just to spite the 1st and see them lose more money.

Permalink Reply by Cathy Baumbusch on June 18, 2010 at 8:40am

@Juan Reyes, Would that be Wells Fargo by any chance?

I'm in a situation where Freddie Mac won't let the extra $ come from ANY source- even commssions!

Permalink Reply by John Treadwell on June 22, 2010 at 8:40am

I am having this problem after 4-5-10 and the Hafa Program ,the 2nd lender are not working with any easy solves.
They want more money than the 1st allows ,and now the 1st are starting to say NO to any cash payments outside of the sale. My understanding is if you can disclourse it on the HUD to both sides it's NOT legal

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