Appraisal came in $10k below sales price. Buyer can't pay difference. Seller has no money. The 1st is getting full amount of loan & 2nd is taking a major loss. We lowered our commission, again - to give the 2nd a higher net AND here is our Negotiator's response, to lower sales price.

"Is there a way that we could still get $10,800 for the 2nd lien? That is the absolute lowest we can take for the 2nd. If we make the first mortgage a short sale instead of the current full payoff, Fannie Mae would have to review the short sale to consider giving that much to the second. Most likely end in a decline.  Let me know so I can figure out how to proceed."

Help!  Any suggestions? Trustee sale is 1/10/10 ( and we have postponned it twice). Our COE date is 1/7/10.

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Wow, that's a tough one. Sounds like the 2nd would have to take $800 if I'm reading your post right. I don't know how much commission is there, but I'd see if what you're kicking in + the seller taking back a note would work. It's a real hail mary pass at this point, but unless you under-sold it, it doesn't seem like the 2nd would gain anything from a foreclosue sale.

Tell the buyer to get approved at a different lender... new lender means new appraisal... not sure what the problem on that one is .. am i missing something?
If it were that easy - lets see, change in lenders means: written consent between buyer & seller, buyer would have to kick-out another $500 for appraisal, new appraiser will need to be ordered & performed, new lender would have to gather all of the buyer's data, send the file to underwriter for their processing, buyer would have meet all of the new lender's conditions...in the meantime...the Trustee sale is going to happen in 2 weeks AND there won't be another extension. ...not so easy.

The Negotiator said:
Tell the buyer to get approved at a different lender... new lender means new appraisal... not sure what the problem on that one is .. am i missing something?

Oh well you left all that other stuff out :)

I would gather comps and take them to the lender and show the values based on comps and explain that 1 appraisers guess isnt always right (show proof) and ask for another appraisal.

John Theis said:

If it were that easy - lets see, change in lenders means: written consent between buyer & seller, buyer would have to kick-out another $500 for appraisal, new appraiser will need to be ordered & performed, new lender would have to gather all of the buyer's data, send the file to underwriter for their processing, buyer would have meet all of the new lender's conditions...in the meantime...the Trustee sale is going to happen in 2 weeks AND there won't be another extension. ...not so easy.

The Negotiator said:
Tell the buyer to get approved at a different lender... new lender means new appraisal... not sure what the problem on that one is .. am i missing something?

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