Negotiating Junior Liens
IRS Liens- IRS Publication 783
Code Enforcement Liens
Property Tax Liens
At time of listing.
Order a payoff
Is it a HELOC?
Cash out or purchase money?
Is it the same lender?
Order title search
Freddie HAFA $6,000
Fannie HAFA $6,000
FHA PFS $1,500 plus you can use the seller incentive of $1,000
VA Compromise. Net 88.13% of appraised value.
If none of the above start with 10% of the balance owed or $1,500 whichever is less.
When and how to submit the Short sale to the junior lien(s).
Submit at same time as 1st mtg
One to the 2nd offering less
One to the 1st paying more
If they ask for approval from the 1st try submitting a payoff letter.
Who can pay?
Paying prior to closing
Placing payment on the HUD
1st won’t allow additional payment
Junior wants it “off the HUD”. RESPA
Move Lien to different collateral
Just can’t come to an agreement at all? Seek legal advice
Notice of Homestead FL Sta. 222.01 (example)
Start over. The answers may be different the next time.
If all else fails have the borrower contact the lien holder and/or an attorney to discuss remedies to have the lien or judgment removed from the property.
Wendy Rulnick is a licensed Real Estate Broker for over twenty years, and has sold hundreds of short sale and pre-foreclosure properties. She has been featured in Kiplinger Personal Finance Magazine and Florida Realtor Magazine as a short sale specialist. Wendy also teaches Short Sale seminars and has developed a special agent training and resource site with her business partner, Bryant Tutas - www.shortsalesuperstars.com.
Bryant has been in Real Estate for 18 years and is the Broker/Owner of Tutas Towne Realty, Inc located in Kissimmee FL. He is also the co-founder of Short Sale Superstars and co-broker of REGrow, LLC. Negotiating Short Sales is the cornerstone of his business. He does it often and he does it well.