2nd Lien in Recovery with John Cardenas, needs min 20% to release only

My sellers have a second lien with Chase, which unfortunately has ended in the recovery department and is now being handled by John Cardenas. He won't even release the lien for a short sale unless they received at least 20% of the balance. First lien is offering $3000, they want $11000.

 

After I spoke with him on Monday, he said no deal unless they get that amount. Then today I hear he sent my sellers a letter offering full release with no deficiency for $11000!!! Yet they won't "release lien only" for $3000??

 

Any suggestions for negotiations?

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Replies to This Discussion

Permalink Reply by Melissa Colvard-McKinsey on February 16, 2011 at 10:39am
He called me when I was negotiating with Chase Equity and offered a settlement of way more than they were offering and I thought, "oh well, it's all over now". However, I called the negotiator and he was able to finish our negotiation to a successful close. I think they have leeway if you are already working on the short sale.
Permalink Reply by Mike Sher on February 16, 2011 at 10:52am
chase is know to force sellers to pay 10-30% for seconds.  The reason why they ask is because they think your seller is able to pay.  I assume this is not HAFA or else you would be able to apply some pressure on the 2nd for a full release. Is the negotator asking for an addtional $11,000 above and beyond the $3000 or is this really $8,000.00?  I would work the amount down as much as you can and take the deal if the seller can pay.   If not, try to get the buyer to pay for some.  Last resort is to agree on a prom note for the $11,000 for 100 months at 0% interest,  At the end of the day 20 cents on the dollar is not bad, if that is all you can get.
Permalink Reply by Evelyn Broxterman on February 16, 2011 at 10:59am
Seller has no money to bring to the table.
Permalink Reply by Evelyn Broxterman on February 16, 2011 at 10:59am

Melissa,

which negotiator did you call? I have no other person.

Melissa Colvard-McKinsey said:

He called me when I was negotiating with Chase Equity and offered a settlement of way more than they were offering and I thought, "oh well, it's all over now". However, I called the negotiator and he was able to finish our negotiation to a successful close. I think they have leeway if you are already working on the short sale.
Permalink Reply by Melissa Colvard-McKinsey on February 16, 2011 at 11:04am

Evelyn,

I had already been assigned a negotiator. He was willing to take $11,000. When John  called me, he told me that he didn't know anything about a short sale and that it was in recovery now and that we would have to start all over. He called back a few days later and wanted something like $40,000. 

Luckily, the 1 negotiator was able to recall it.

Maybe you can call the customer service number and request a negotiator if you have an accepted offer...

Permalink Reply by Mike Sher on February 16, 2011 at 11:09am
I would provide all updated bank statements, revisit the hardship letter and provide other documents of hardship.  Is your client making payments?  If they are current, that is another reason they might force the seller contribution.  Also if your seller is making payments on every other account and not their mortgage they know the seller has some means. If you seller is trully broke, you have to sell that, but if he/she has the abilty to pay, the bank will force the contribution.
Permalink Reply by Wendy Smith on February 16, 2011 at 12:07pm

how about compromise at 10% of the balance - if $11000 is 20% then 10% is $5500; first lien pays $3000, now you're only $2500 apart.  Prom note? paid by buyer? split between buyer & seller? don't you dare throw in any part of your comission!

Chase WILL do 10% on a charged off 2nd but the front-guys (e.g. Cardenas) always demand 20%.

Permalink Reply by Mike Sher on February 17, 2011 at 4:13am
Wendy is right.  10% for 90% of debt forgiveness is not a bad deal at all.  If you are looking at $5500 cost, the seller has to be able to get that.  If the seller is not making payments and still has a job, Hew should be able to make it work.  He could borrower against his 401K for the 5.5K
Permalink Reply by Dianne Slutsky on February 18, 2011 at 8:21am

I have a file where the 2nd lien was with Chase for $160,000 and discharged in bankruptcy, the first with BofA has approved the short sale and will pay Chase $3,000 for lien release.  Chase is refusing.  How much will it take to get a lien release from Chase even though this debt has been discharged in bankruptcy?  Any, help would be greatly appreciated.

Permalink Reply by Wendy Smith on February 18, 2011 at 10:18am
that's an interesting question, Dianne.  Perhaps have the borrower call his/her BK attorney?  Was it a CH13 or CH7?
Permalink Reply by Dianne Slutsky on February 18, 2011 at 10:23am
This was a Chapter 7 BK and the bankruptcy attorney stated that you cannot force a lien strip in a Ch. 7 discharge.  Any help greatly appreciated.
Permalink Reply by Wendy Smith on February 18, 2011 at 10:29am
are you famaliar with Activerain.com?  There's a couple of attorneys that blog and are quite knowledgable.  My favorite is a guy named Richard Zaretsky from West Palm Beach - extremely well versed in short sales, real estate law, etc.  He has his own group, I think it's Palm Beach Short Sales but if you peruse or search his blogs, I'll bet he has written a post that may be helpful to you.  I'd love to know what you find - are you in FL by any chance?

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