Replies to This Discussion

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on May 5, 2012 at 8:07am

It is very unlikely.  I have not seen a 3rd (especially a pool company or solar company) get anything from a 1st.  Someone needs to negotiate with the pool company to see if that lien can be accommodated with a promissory note or moving the lien to another property owned by the sellers - Other than that, will the Buyer pay the pool company to release their lien ?

Permalink Reply by David D McElroy on May 5, 2012 at 9:17am

 

If the 1st qualifies for HAFA, the current max payout to all Jr. liens is a cap of $6000 total. On June 15th 2012 that will increased to $8500. I have closed short sale with pay out to 2nd and 3rd lien holders under that scenario. The obstacle is getting the subordinates to accept what is available.

Permalink Reply by Bryant Tutas on May 5, 2012 at 9:52am

Brian. It's just like any other lien. Negotiate it down as low as possible then place it on the HUD. If the pool company plays hardball then just put $20,000 on the HUD and submit it. Just remember it it's HAFA you are limited and if it's FHA you are limited. HAFA can be opted out of FHA can't.

I've had BofA pay as much as $25,000 to a 3rd lien (HOA lien).

Permalink Reply by Bryant Tutas on May 5, 2012 at 9:54am

Thom also brings up a good strategy. See if the seller can make arrangements to pay them on a note if they remove the lien. Or if the value is there the buyer can pay it.

Permalink Reply by Lisa Cedillo on May 5, 2012 at 10:51am

I've had a third paid out on a Fannie Mae 1st, Wells Fargo was the 1st, Wells Fargo HELOC was the 2nd, and Bank of America was the 3rd.  WF 1st agreed to payout $7000 total, it was up to the 2nd and 3rd to be negotiated, which I had the task of completing, literally a couple of days before closing, still negotiating.  The hurdle... the 2nd was $25K and the 3rd was $100K.  Although the 3rd was subordinate to everyone, it was higher than the 2nd. 2nd was entitled to the entire $7000, but accepted $3500, the 3rd wanted $4800, we only had $7500 to work with, the 1st capped AND NO ONE (Not the buyer, Nor the seller, Nor any of the agents) could contribute towards ANY of the 3 loans, per Fannie Mae guidelines.  Therefore, negotiate or foreclose.  The 2nd was entitle to all of the $7000, but was willing to give up half, and split with the 3rd, but the 3rd got greedy and stated they wouldn't take less than their $4800, because it was the lowest (guideline) percentage allowed, for that loan, after weeks of negotiation, and multiple phone calls to multiple managers, I finally at the 9th hour, spoke to a gentleman that literally was reading the guidelines to me to explain, why they couldn't accept a lower amount, and then......he heard himself read a "loop hole", it stated "the subordinate loan", which this one was the subordinate to the subordinate, loop hole, guidelines dealt with 2nds NOT with 3rds, he approved the amount offered, sent the letter and we closed on time!  The funny thing is that the original negotiator for the 3rd, was just so ticked off that BofA would loan anyone a higher amount on a 3rd than on the 2nd, and they literally went back to the original loan papers, to confirm, that BofA knew they were in 3rd position, they thought they were in 2nd, throughout the entire short sale process, she NEVER  realized, that every negotiation we were making was based on them being the 3rd.  Crazy, how sometimes, they don't get it.  Several Emails, stating it, several phone calls restating their (3rd) position, and it wasn't until the end, they finally put it in writing that they were not the 2nd, but the 3rd.  Oh well, Miracles do happen!