Negotiating SS With 2nd Lien Holder - Wilshire Credit

krish profile photo

Folks,

I have a property that was purchased 100% financing.

1st Option one - 111K ( Payoff 121K)

2nd Wilshire - 29K



Property is worth only about 140K or perhaps less.

I offered 4K to Wilshire and they refused.



They say that the offer has to be midway.

I am not going to pay 15K for the second loan.



Any tips on what i need to tell them. ?

The property is not listed with a realtor, because i am

not ready to pay any commissions in the final price.



I also sent them an invoice from my renovator for

4K worth of work and possibly more due to the home

being abandoned for 6 months, all utilities shutoff and

the 1st loan foreclosing.



Any tips?

I need this home at say 110K, but will go upto 120K

total at closing.



Have offered 104K for the first. yet to hear back from

them.



The first lien holder Option Ones loss mitigation dept

mentioned that they will not negotiate with the second

and it is me who will have to do it.



Anyone have any experience dealing with Wilshire.?

Does the negotiator make the decision or it is

someone above her that does it. ?

Perhaps she knows that they will not approve and

she is trying to screen it out right away.



Thanks

Krish

Comments(7)

  • hifive029th August, 2006

    just curious...How did this deal go? I have identical situation with the same lenders. Wilshire is tough. Let me know.

  • ecw30th August, 2006

    Where part of the country is Wilshire located? I have deal going and they are 2nd position. I would like to purchase the loan for 50% on $.
    Can some one give me hand to make this deal work? Thanks and have great and profitable day.

  • hifive031st August, 2006

    Aloha shortsalepro,
    Hmm that is a good idea... From your experience what do you think is a decent offer that Wilshire(2nd) will take for cash? The borrower owes Wilshire $ 60,000 + $10,000 default/late charges. BPO is $320,000 and 1st lender is Option One payoff is around $285,000 or I can hold on to it until prepay($8,000) is gone which is next summer. Advice please...

  • hifive01st September, 2006

    Wilshire receive 3 offers asking for short sale and they would have net around $20,000 with the last offer but nope.... they do not want to do short sale. Wilshire is probably gonna walk away with less than $10,000 by the time this property foreclose in few months. I am thinking of offering Wilshire $10,000 and update 1st mortgage(Option One) approximately $8,000. Sell it after prepayment penalties is removed next July. This means I paid aroud $300k for this place and maybe sell it for $335,000. The seller is who is recently divorced is still living there without paying a dime. There is also defaulted association fee of $4000 that got to be clear too.

  • CFLagent21st February, 2007

    just wondering if this deal ever went through with Wilshire.

  • krish21st February, 2007

    Wilshire accepted 17K on their loan. this is after
    the foreclosure happened and we were the high
    bidder. Option one wanted more money to let us
    reinstate the loan. An amount that would have put
    it way beyond the price we paid in the auction.
    We instead took the property via the foreclosure.

    The owner on the mortgage is deceased, so no
    concerns with credit getting damaged.
    -krish

  • TheShortSalePro2nd March, 2007

    Can someone please give me some advice?

    Be upfront with your Client.

Add Comment

Login To Comment