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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While it is true that I am new to this site, and many questions are good ones, this still seems like a rookie question. Sorry. If the question of how much should credit care liens be paid in a super lien state, I would respect that. In any case, this type of lien would not be a super lien.
A better question is what are you trying to accomplish with this lien, a settlement or a release. Our aim would be to get a release. In a foreclosure, the lien, but not the judgement would be released. Since there is no equity, and the debt is not associated with the property, we find that getting a release is easier. Sometime we get some funds, paid POC, to settle the debt completely. With the $1,000 coming from the 1st, and the serious lateness of the debtor, we find that if the debt holder will generally settle the who amount for 10-20% of the total amount due. If the owner of the property is using the short sale to get their financial affairs in order, this can be part of a package. However, if the property owner is a step from bankruptcy, but wants to avoid having both a bankruptcy and a foreclosure on their credit history, getting a promissory note, will make little difference.
I respect what I have seen from Jeff Payne. He is worth listening to. I did not recommend that any party use our firm. Nevertheless, I will stop posting. We just have a difference of opinion.
On other posts the difference of opinion is between what should happen in a perfect world vs. what should happen on this earth. While this site should be a forum of pros and people trying to learn, I think there is too huge a gap between those who are superstars and those who are pretending to be professionals. All a pro should try to be doing, in my opinion, is to put all parties in the best position possible knowing that all parties are going to lose something.
Ed,
Don't judge the site by it's name. There are newbies, and many others in the mix on this site. Telling someone they are a "rookie" or have no business negotiating just hinders people's learning experience. People come here to learn and gain knowledge from others, and oh ya, we bounce ideas off each other, and see how others approach a situation. I go for 10% on my 3rd liens (or get the full payoff depending on the situation), but I am trying to ascertain if others have had success getting less in a low property value situation.
There definitely is a gap between those with the knowledge to successfully complete a short sale and those that don't, and woudn't it be great if those seeking advice from this site got that knowledge for us to close the gap? Don't you think that's "in the best interest" of any homeowner?
I don't think we had a "difference of opinion" in our answers on what we pay to 3rd party lien holders if you read my post. It seems we are doing the same thing, but we definitely have a difference of opinion on how to respond to people who are trying to collect information or polling peers. I don't wish you to stop posting, especially if you can offer useful advice in a respectful manner, but if you're going to approach other "newer" members of this site in the same manner, you will be alienating members and that's not what this site is about.
That's pretty common. We regularly ask buyers to contribute to a credit card lien or something else if they become problematic. I would say we start at 5-10% but needed to know if others offered less. The problem we run into is some of these smaller lower position liens hold out for 40-50% of the loan balance, and that's where we may ask a buyer to contribute. It can become quite interesting to navigate, but certainly doable.
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