Replies to This Discussion

Permalink Reply by joe beauchamp on July 24, 2010 at 7:36am

I process for a co. that does SS's for realtors, atty's, etc., so I don't have to know all the details of the accounts. It is highly unlikely that your agent was correct - just didn't want to mess with this.

A short sale is never dead until the house is gone - denial is not the end, just resubmit, etc. A house can be sold, you just need to handle the terms. There is no reason that I know of why a lien all of a sudden means a house cannot be sold - and that is what you are saying. -- The reason I don't know for sure is because there can always be some crazy law or BofA rule in the way, but it is very rare.

Look at it in pieces - 1st lien, 2nd lien, buyer, seller.. Not so bad like that. Dealing with BofA is one thing, dealing with that 2nd lien is another. How is that different from any other 2nd?

You probably have a tough 2nd - when loans go to a collections department, you have the real possibility of them screwing up the deal because they always want too much. A "bank" will accept the 8% from fannie mae, a bonehead at a company that bought the bad debt for $.05 on the dollar has so little to lose, they will press for 50%, 70%, etc. and the odds are that someone will be found to pay more frequently than the deal dies - so they usually won't break down just because this one will die if they don't cooperate -- I could not do their job - nasty, often lie, would beat up an old lady for a dollar. So, you could be against that.

If I didn't have my resources at my company to ask first, I'd go to that 2nd and feel them out - what would they settle for? Since you have nothing invested yet, you can push them hard - tell them up front, this is their chance to actually see money - or to be wiped in a foreclosure - you have nothing in this yet and need to see if they are crazy or reasonable. Then ask what they need - they give you a high percentage, you should feel free to tell them to straighten up - give you the bottom line - their number is absurd - stick with it and you are out the door - not going to take on the deal and their lien is gone in foreclosure - now, what is that number?

Feel free to push 3 or so times - they are as close to conmen as you'll ever see - they left reserves. They also have soft spots - do they need to bring in SOME money to look good? Is the boss on them for some reason? So, you need to convince them to play ball and you are serious about walking. [Alternatively, you can look at the deal and see what you can pay them to get them out of the picture - they are conmen, start out lower.]

With that, you know what you have. Can they be paid off at the right level? Get their offer in writing - you donj't want to put 2 months into this and find out that they lied and know that you will now pay double just to finish it off.

Gee, I hope you don't think that I feel that ripoff artists, conmen, general scumbags are deeply associated with banks. OK, you can... ;-)

Does that give you a place to start? You should be able to scope it all out and see if you want to continue or you've got a real pinhead at that collection agency (ask for his manager - usually, you'll get the line that he can't do that, whatever that is, ask for the person who can do that - if he says no one, then ask for his supervisor, etc. What do you care? You have to see if you want to waste time with these jokers or kiss this off as a bad deal to get into, so feel free to push HARD. Believe me, if you were dying and only had money to get your kid that needed operation, they would be right there telling you that you need to pay them, the kid doesn't matter. Nope, not a job I could do.)

Go get 'em!!

Permalink Reply by Lori Young on July 24, 2010 at 7:37am

I did one like this and had to work the credit card lien. They accepted $3000 to release the lien for the sale and still will seek payment from the seller.

Permalink Reply by Chris Black on July 24, 2010 at 7:41am

Ismael,
What is the amount of the judgment?
Is the judgment certified? That is, has it been recorded twice, with the second having a certified stamp on it?
Chris Black
Attorney
Winged Foot Title, LLC
E: [email protected]
W: www.wingedfoottitle.com
Blog: www.homeclosingprocess.com

Permalink Reply by Ute Ferdig on July 24, 2010 at 8:13am

Sure, you can do a short sale. While we mostly deal with first and second mortgages, that does not mean that we can't do a short sale when there are other liens involved. We have to get an agreement from all lien holders. Some are more challenging than others. With money judgments that have been secured by a lien on the debtor's real estate, it's really no different from a HELOC. Not sure which state you are in, but most likely the credit card creditor's right to collect on the judgment is not affected by a foreclosure. They lose their security interest if the first forecloses, but the money judgment itself does not go away. It would go away if the debtor gets a discharge through bankruptcy. I believe the other agent either did not know what he/she was talking about or did not want to take on the task of having to negotiate with a credit card creditor.

Permalink Reply by Ismael Jusino on July 25, 2010 at 4:58am

Ute Ferdig said:

Sure, you can do a short sale. While we mostly deal with first and second mortgages, that does not mean that we can't do a short sale when there are other liens involved. We have to get an agreement from all lien holders. Some are more challenging than others. With money judgments that have been secured by a lien on the debtor's real estate, it's really no different from a HELOC. Not sure which state you are in, but most likely the credit card creditor's right to collect on the judgment is not affected by a foreclosure. They lose their security interest if the first forecloses, but the money judgment itself does not go away. It would go away if the debtor gets a discharge through bankruptcy. I believe the other agent either did not know what he/she was talking about or did not want to take on the task of having to negotiate with a credit card creditor.

Permalink Reply by Ismael Jusino on July 25, 2010 at 5:00am

Thanks for the info. I reside in Florida, This is very helpful.
Thanks again

Ismael Jusino

Ismael Jusino said:

Ute Ferdig said:

Sure, you can do a short sale. While we mostly deal with first and second mortgages, that does not mean that we can't do a short sale when there are other liens involved. We have to get an agreement from all lien holders. Some are more challenging than others. With money judgments that have been secured by a lien on the debtor's real estate, it's really no different from a HELOC. Not sure which state you are in, but most likely the credit card creditor's right to collect on the judgment is not affected by a foreclosure. They lose their security interest if the first forecloses, but the money judgment itself does not go away. It would go away if the debtor gets a discharge through bankruptcy. I believe the other agent either did not know what he/she was talking about or did not want to take on the task of having to negotiate with a credit card creditor.

Permalink Reply by Ismael Jusino on July 25, 2010 at 5:08am

Thanks everyone for your input. I will be getting in contact with the banks this week.

Regards,
Ismael Jusino