Buying 2nd Note From Lender
Hello, I have a client who recently worked out a repayment with his first lender. He cannot afford to maintain the property because of his 2nd, and found an investor willing to buy the note from the 2nd lender
Details:
2nd lender: owes $132K, $10 past due, 5 months behind, California, 2nd mortgage(not heloc), and has an investor wants to buy note from lender for $10K, or it will foreclose for sure, any suggestions how to approach the lender.
Please let me clarify:
The homeowner has 2 mortgages
1st-with Gmac
2nd-w/ etrade
The homeowner worked on a repayment with gmac, but cannot afford to maintain the 2nd. He owes $130 on his second, but wishes to buy them out. He found an investor to offer to buy the note from e-trade for $10K. The homeowner (my client) is trying to work with the investor, b/c the investor will drop the lien amount by 50% w/ no interest. Problem is the investor,and I have only been involved in shortsales, not buying out the 2nd lien holder. How do you suggest I or the investor approach the lender?
w/ the 1st solid w/ the repayment plan, why should the 2nd discount?
He should have negotiated w/ the 2nd when they were at risk of being crushed by the 1st.
HELOC will follow the buyer. I am sure the 2nd will not bediscounted. Due to the workout w/ the 1st, there
is no reason for the discount
Whoever is conducting the short sale negotiations with the lenders. If there is more than one person in contact with the lenders about a short sale there can be miscommunication and misunderstandings. When I am the one negotiating with a lender I ensure that everyone knows that I am the single point of contact with anything to do with the property. The homeowners and the Realtors are not allowed to speak with anyone, including the lenders, without me on the phone with them. You could say that I am the lowest common denominator in the equation.
By doing this I maintain control of the situation and avoid misunderstandings that are all to common when there are too many hands in the pot.
Whatever your situation, there should be someone who is Johnny on the spot with the lender(s).
Good Luck!
I agree 100% The best advice I can give is make sure you (or someone you designate) is the sole point of contact, and to call every day if necessary. Big banks like CW can literally take weeks and weeks to respond to an inquiry.
We have gotten several short sales approved with HSBC. If they are the second and asking for that much, let me ask, is their a third or a ton of equity above them? We have started seeing a couple seconds stick to their guns and actually redeem. Is the first taking a short?
I got it approved. I think its because they are trying to get a lot of these off the books by the end of the year. My 1st is getting all its money. HSBC was in the second position and got about 67% of their money. I told them my buyer was about to walk if I didnt get it approved quickly.
HSBC is a bear to work with. They seem to display an unusual amount of incompetance. After going back and forth, with HSBC trying to hold out for a few $$, I finallyhad a deal approved by them for 80K, and while I was waiting for my payoff, their legal dept., unbeknown to loss mit, sent the property to auction and it was sold-for 46K! I ended up buying from the guy who bought it at the auction for 60K. HSBC called me back and wanted to know if I still wanted the property, and were quite suprised that I already owned it for 20K less.
Standard FHA guidelines rule on short sales is $1 k for the second mortgage, Be nice and give them $5k
whenever you can they remember this. But not more than $5 k
Well, one can say that about any RE transaction involving a seller in distress. If things are done ethically with proper disc then the idea is not to wind up in court.
Your chances are much better if the former Owner is out of the property.
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