Hi all,

Wondering if anyone has successfully negotiated this with SLS.  I have a short sale, where BoA is the first, they set the price on the home at $125,000.  We got an offer right away at full price, no closing costs, nothing.  BoA gave us approval in about 2 weeks.  They are offering 6% of the payoff to the second, which ends up being $2,600 and change.  The second is with SLS.  We got our "approval" letter from SLS on Thursday last week.  The approval letter states:

The minimum net proceeds of $2,623.80 must be received in our office before the close of business on 04/30/12. In addition to the Minimum Net Proceeds, SLS must receive $3,935.69 in certified funds from a source designated by you prior to the closing.

So in addition to what BoA is offering, they want almost $4,000 more.  When I talked with SLS this morning, I informed them (which they already knew) that the sellers have already been through bankruptcy and that should this go to Foreclosure, they would receive nothing.  They replied "Our investor is aware of that, but all I can tell you is that there IS some incentive for our investor to allow some of these to go to Foreclosure"

So now what?  Any suggestions?

Thanks!

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I've been down this road with SLS in the very recent past on a couple of transactions.  The good, the bad and the ugly of it is, they will NOT negotiate.  When they say "from a source designated by you prior to the closing" that actually means one of two things - they want the seller / borrower to make the payment BEFORE closing or it will have to come from agent commissions at closing - because the first will not allow the seller to pay it and unless the Buyer wants to pay it, it will likely come from agent commissions.

 

For this reason, I no longer accept short sale listings or negotiations that have SLS as a lien holder.

 

Question, was the SLS debt discharged in the BK?  If so, I would suggest you have the BK attorney write a letter to SLS Legal Dept reminding them it is discharged - otherwise this deal is DEAD.

 

Thom Colby

Broker

Newport Beach / Palm Desert CA

Yes, the SLS debt was discharged in the BK, but no lien release was negotiated.  I'll call the BK attorney and see if they can write a letter.  Thanks!

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