Seller refuses to SIGN!
Here's the scoop:
negotiated 1st to take 30k discount
2nd (Beneficial) has a position of 35k and has responded (finally) by agreeing to take 2k IF owner signs for the deficiency - owner says NO WAY!
owner states he'd rather have a foreclosure than sign another loan doc.
Question #1: Anyone have success getting around this requirement? The contact at beneficial has been PAINFUL to work with. Talk about feet dragging.
Any strategy tips would be appreciated
Question #2: Any words of wisdom I can pass on to owner to get him to change his mind? (I already had the BK discussion with him & he won't consider it)
thx
If the Seller has a demonstrated hardship with weak credit, you might be able to make a case (to the mortgagee) that if the Seller were to agree to an unsecured note, the Seller could file BNK and the unsecured debt would be dischargable. Make a play to purchase the second via an assignment at a price that will both get the deal to fly and make financial sense to you.
An assignment sounds like a worthwhile idea - obviously this would eliminate the need for a signature, but will definitely require more $$
ANY IDEA what % they'd be looking for?
The other possibility is going over her head to try to negotiate away the need for the signature - but I don't want to burn bridges (at least not until the deal is done)
"ANY IDEA what % they'd be looking for? "
Yes, they'll want 100%, but you've got to justify why they should accept less, so make your offer based upon the constants that you do know.
wanting & getting are two very different things, especially when defaulted paper is involved.
OF COURSE this would all be a non-issue if I could overcome the owner's objections to signing
from the hip:
counter offer the 2nd mortgage company...
they are in the 2ND! position...
I think you still have room to work with them, (35k down to 2k) especially if you're saving 30k with the first already... Keep banging them...give away nickles to get dimes! they go down by 10k you come up by 5k, etc...
let us know how it goes!!!
hope this helps,
clear2close
oh yeah, btw, Beneficial is a pain in the ---.
[addsig]