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% liens will take to settle versus seller BK?

Posted by Pat Hood on September 28, 2017 at 12:13pm in Short Sale Discussions

Short sale approval/2 liens. Problem is 2 non-related liens for 90,000 and 11,000(credit card) placed on property. 1st lien(Wells/Freddie Mac)will not allow any funds from short sale to go  to the two extra liens. Seller has no money.

Seller fed up and has BK attorney. Already paid retainer.

Want to try paying some monies from buyer side to 2 extra liens. What % will entice? If alternative is BK? 12000 to the 90,000? 2000 to the 11000?

Suggestions. Thank you!

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Replies

  • Jonathan Katz October 2, 2017 at 4:33am

    FHLMC does not allow monies to show on the settlement statement to subordinate liens from contributions. They generally will allow up to 6,000 to subordinate mortgage liens.  This puts all parties in an unfavorable position when there is a judgment or when a subordinate lien does not want to take FHLMC's cap payoff to subordinate liens.

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