I just received an approval from Wells, the problem is they are not willing to contribute funds to either of the two credit card judgments on title.  The negotiator said their policy is not to pay any unsecure judgments.  The seller and buyer do not have the funds to pay the judgments.  One will settle for $4800 and the other will take $1500.  Any help or suggestions would be greatly appreciated. 

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  • If you are aware of the liens at the beginning, you can negotiate a buyer paid settlement.  This works very well, and will certainly influence the offer price. If liens pop up later, any real estate attorney can usually simply get them removed from title in a negative equity situation.  Another reason to always have a seller attorney in the deal.


  • I'm working on a deal like this with NationStar. and NationStar gave me no guidance regarding payoff amount for the two junior lien holders (both credit cards), and told me only, "We need to net $xxx k," leaving me to work out the details.

    Seller has no money to contribute.

    Our proposed solution: Realtors cut their commissions, seller gave up $3,000 HAFA incentive, settlement attorney cut his fee. I split those savings between the two junior lien holders and asked them to accept about 1/2 what they're owed to release the leans.

    Junior lien holders seem receptive and they offers have been submitted to higher authority for approval. We're waiting for their response.

    I expect to have answers (approvals?) from the juniors this week, and NationStar has already said they'll approve it.

  • Seriously your first response is to see if the buyer or agent will contribute when the seller has likely not been making a payment on the house? One would think that the first place to go is the seller to see if they have saved up any money. Since the seller most likely knew about the judgements they should have been saving for that for a while. I would not give up a dime of my commission until I had shook all the other trees.

  • Ryan,

            How much are owed to the creditors for the judgments and when is the last time a payment is made? You are stuck between a rock and a hard spot as you will need someone to contribute towards the judgments I'd push back on the buyer to see if he can come up with anything at all. The best spot to start at is to look at all parties in the transaction and see what amount can be contributed in total. Then proceed to lowball and negotiate with the creditors in regards to settling/releasing the judgment. If no one is able/willing to contribute i'd look into obtaining a buyer who is able to or possibly having the current buyer reduce their offer to compensate for making a cash contribution. Also, if the borrower has any additional assets it's possible the creditors may allow a partial release of lien for a lesser payoff than a settlement.

    If you have any questions feel free to reach out to us as our door is always open.




    • Thanks for the info Brett! 

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