Just got the short sale from *^%%.  MULTIPLE liens.  City taxes, state taxes - which are priority, and then there is a citibank card lien for $15,000.  The property value is $97,000 via appraisal done.  LITERALLY the NET to Ocwen if they allow all payouts is $30,000.  They will NEVER take that, so I'm going to try to negotiate some of these.  There is a second lien holder LCS financial - that will take 10% of loan balance, but seriously I feel like 10% is too high for the citi bank lien. 

 

What do you guys offer the little lien holders?

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dang sounds like a lot of work for a 97k house! good for you for helping them out tho, i hope you are getting PAID

 

It's a PITA and LOL...I'm praying I'll be paid. 

Smitty - With a credit card lien, I'd find out how much they want to remove it, a lot of times, $1000 will do it.  It can be POC, too.
True about POC, you can also sometimes flip 2nd's to POC with a settlement....
All of the parties have to release for the sale to go through and negotiating with them will be harder than the first and second.  Most of the junior lien holders will want all or most of their monies to release.  This sounds like a foreclosure waiting to happen.  The second wanting 10% is the least of your worries.  Put all the liens in your hud once you receive an offer and see what the first has to say.  I agree with Josh that this file may not be worth your time and energy.  Good luck and keep us posted.

The answer is at most $1,000.  What your question really shows, however, is that you clearly do not have enough knowledge or experience to negotiate a short sale.  

 

In the net you give, all junior lien holders are apparently getting a 100% payout.  The city and state taxes have a priority over the first mortgage and will have to be paid in full.  If there were to be a foreclosure they would get paid before the first mortgage holder.  A credit card lien is not a mortgage.  It was originally an unsecured debt, that sued and got a judgement.  If is at the bottom of the priorities.  With your level of experience, you need to farm this file out to a pro if you want to close this file.

 

Sorry to be harsh, but you have a fiduciary duty to your client.  If you cannot be reasonably expected to successfully negotiate the file, you should find someone who can.  This way you can get your client out of trouble, get paid, build up your reputation, and ask questions of how and why the account is handled.  I would appreciate it another short sale pro would weigh in on inexperienced agents should farm files out.

Ed,

 

LOL...you're kinda funny...but, with all due respect, I've negotiated over 100 short sales and my standard for 2nd  and 3rd position lien holders is 10%, unless it's greentree as a second and then I ask for 20% - 30% DUE TO EXPERIENCE.  Now, I'm in a super lien state, which means if the property is to be sold ALL subsequent lien holders MUST be paid. OF COURSE taxes trump mortgage..we all know that.  BECAUSE of the property value being so low, I cannot feasibly ask the senior position lien holder to pay out the maximum off the NET on some of these liens.  Now NORMALLY I WILL ask depending on how much is owed and what position the lien holder is in.  So, for instance, I just got a full lien paid out of the NET from BOA for a $13,800 sewar betterment.  No need to negotiate with jr. lien holders if you can get the full payment at closing RIGHT?!?!?

My issue is this is the lowest value of a home I've negotiated so, I can't approach this as "normal" and even 10% for a 3rd position lien holder seems too much because of the value of the home, so I was MERELY taking a poll to see if others offered a lower % and what the success was.

 

Ed, I suggest you hang around more than 20 minutes on this site to see who are active members before you start making assumptions regarding other people's level of "expertise" - Should I "farm" out my short sale to YOU Ed, considering you're a 3rd party negotiator???  Nice way to drum up business though...alienating peers isn't going to win points.

Edward, it appears that you must not come on this site much, Smitty is very capable
If the property is their homestead, the credit card judgement doesn't have to be included, if in Florida due to homestead laws. I have heard of negotiating taxes, but haven't personally had to do that, yet. I had to get an hoa company to drop some but only after a long discussion on detailed fees and only saved about $500.
I think the reason for this forum is to help agents in areas where they don't have experience.  That doesn't mean they are incapable of doing the job.  There's a learning curve for everything.  Good for you for asking questions and good luck on this file!
Jennifer, good post!  Just because someone asks a question does not mean that they don't have experience.  In Smittys case, we know that the experience is there for sure. 
Jeff thanks for the support.  What's sad is IMAGINE if I was a new member here and posted and got that kind of response?  I'd never come back.  I'm not saying we can't have a nice opposing discussion, but the response was less than welcoming for someone who hasn't even been on the board more than a day.

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