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Permalink Reply by Steve Early on December 6, 2010 at 4:25pm

It is fairly typical of 2nd lien holders to want more than the pittance that a 1st will toss in their direction. I have not had experience with this credit union specifically, but in general you will have a hard time getting a credit union to roll over. This is because every time they take a loss, it comes out of their available funds. There is no Freddie, Fannie, or US Taxpayer backing them up.

You didn't say how much the first lien was offering, and how much more the second lien wants. If you're talking $3-4,000 for full debt forgiveness, do the deal. If you're talking $75,000 or $80,000 you may be able to whittle them down, but they're not likely to go away without getting something.

I know a lot of people use the line, "Tell them to accept your offer or they'll get nothing." I'm not convinced this is terribly effective because if you don't work something out with them, they can mess up the entire transaction and still pursue your seller.

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