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Are you finding the second mortgage companies harder to deal with

Posted by Kevin Vitali on April 28, 2011 at 11:03am in Short Sale Discussions
I don't know if I am just on a streak or is everyone noticing the second mortgage companies being tougher?  I am having a few 2nd mortgage companies asking the seller to bring money to the closing table and sign an interest free note.  Just wondering what others are seeing.

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Tags: 2nd, mortgage, sale, short
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  • Mike Horton April 28, 2011 at 1:17pm

    The only time that I don't have the 2nd asking for more than what the primary lien holder is providing, is when I am dealing with a Fannie mae loan with the primary. Recently I had PNC back off the request when they learned it was a Fannie first. Not entirely sure why, but it allowed us to close when we would have been stuck.

     

  • KARLA ELKEBIR April 28, 2011 at 11:57am
    An agent in my office may be losing his short sale deal and listing due to the buyer's not having loan docs 10 days after their bank said they would (BofA is doing their loan) and the 2nd (a credit union) is not extending the closing date pass tomorrow..mind you they're getting a good payoff and the buyers and both agents are willing to pay them a little more for the extension...It;s not just you, banks are not cooperating, and yes, I'm hearing that the 2nds are tougher..Good luck.
  • Smitty April 28, 2011 at 11:55am

    Kevin, I always tell the seller if they have a second mortgage they better be prepared to bring $$ to closing or sign a note.  I go into EVERY sale with that up front.  Most amounts can be negotiated down, but that's why I have the buyer offer their lowest amount to start and work upward. 

     

    I think traditionally second lenders can be tough, although I just had two SPS liens on the same property with an original note of $425,000 and they accepted a $175,000 NET.  Who knows?!?!?

    I think if you prep your sellers they may be required to come up with $$ or sign a note you're in a much better position when the ball drops at approval time, and then it's a GREAT gift when that second doesn't ask for $$.  The alternative if they won't do this is foreclosure and that's what you have to explain to them.

     

    Good luck.

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