Hi guys, I currently have a Short Sale with Wells Fargo and I just came to find out that they have recorded a $14K lien onto the property and before they can proceed with the SS in Equator, I have to get that lien released for $2500 or less. Well.. the thing is the lien is from Wells Fargo and the mortgage is also Wells. That don't make sense, they're basically asking me to negotiate the $14K and get that release first then they will process the SS? Why can't they just handle this themself?
In any case, my client is not even aware of the $14K lien they filed on the property or why it is there, what should I do? And is this normal for the bank that is filing foreclosure also filing liens on the property?
Trong - Could the lien be a non-mortgage lien from Wells Fargo? Another type of loan, different division?
The owner "just remember" taht it was a credit card that he refused to pay and that was why they filed the lien on the property. Can I negotiate with credit card just like if it was a mortgage? And where do I call to negotiate with them? Any advise?
Trong - Yes, you can negotiate with them. They may release their lien or even "settle" for much less, try $500, whatever the seller can afford (or maybe the buyer can contribute). Your seller should have their telephone number from the correspondence they've sent him. ***(REMINDER: get title work done as soon as you get a listing - this type of issues will show, and you can work on resolving it ahead of time)
Amen to getting Title research!
Thanks Wendy and Becky, you guys are always so helpful on here. Another question, how should I proceed to negotiate with them? I mean, what kind of incentive beside from the overly used, "my client will let the house to go foreclosure and/or filing BK" can I use to enticed them to work with me and settle the debt for as little as possible for my client?
Trong - Just "ask". It's not an uncommon request. Explain it's a short sale and ask if they will release their lien. You could send then the title search or payoff proving the mortgage liens exceed the home value/sale price, and the preliminary HUD. I don't ever state the overly used expression you quoted... it is really not necessary. This is the current reality.
Wow, I over thought. Thank you Wendy.
This is the correspondence I got from Wells Fargo:
"Hello, I am currently processing this account and have reviewed title (See details copied/pasted below). A judgment, a certified copy of which was recorded AUGUST 05, 2011 as INSTRUMENT NO. 2011-xxxxxxxxxxxx of Official Records. Amount: $14,468.00 and any other amounts due thereunder. Creditor: WELLS FARGO BANK, N.A. Debtor: JOHN DOE, I will need a lien release that does not exceed $2500 dollars or letter of satisfaction to proceed on this account. Thanks!"
Does this mean the Wells will actually pay up to $2500 at closing to get this CC debt settle for my client?
It sounds like it! If so, that is fantastic! Follow up with the creditor and see if that will do!
I just talked to them about it and they say that his balance is $10,808 and that $2500 is way below 50% and therefore, they will never accept it. They wanted $7,881. I followed up with, "is there a guidelines % that you can accept?" And she just kind of ignore the question and said again it is way below 50% and they will never accept it. When I brought up about the house is being foreclosed on and most likely this lien is going to be wiped out anyways, and then kindly asked if she can help assist me with this, she said that this is a judgement and it goes with the owner? even after a foreclosure, they can still pursue him?
What can I do now?
See if seller can come up with anything, and/or buyer. They may actually come down from 50%. The foreclosure from the mortgage holder is not related to the credit card judgment...
Lets say that they agree to settle for $5000, is it possible to coordinate it so that at closing, the lien pays $$2500 and then my client will bring in $2500?