SS
I have a short sale in the works but that are asking too much.
appraisal came in at 120k
1st wants 102k (what their owed)
2nd refused a $3500 on 20k loan so I went back with $5500.
I started at 97k total (91.5k to the 1st but they want the whole 102k. I figured I waould try one more time with the first and split the difference with them and go 96.5k if they bail on that I think I will walk. 102 plus 5500 puts me with very little margin.
Do the 1st always want it all???
Thanks, Kirk
Kirk--
Get more evidence on the property why the 2nd should discount more and of course don't forget at auction they get nothing. You should be able to get them to come down more than that. Tell them if they go to $3,650 they have a deal.
Keep working it.
If their own due diligence suggests that they would be made whole if the property is sold at auction, they would need a compelling reason why they should consider accepting less. That goes for both senior and junior mortgagees.
Sometimes, juniors attend the Sale and force up the bidding in an effort to maximize their recovery.
By denigratring the mortgagee's perception of value, and providing a compelling argument and supportive proposal... they often agree to accept less than they are due.
But there has got to be a good reason for them to do so.
As a rule of thumb - 85% of the BPO is what the lender might be looking for if there are no other extenuating circumstances. 102k is 85% of 120k.
In the future, your best bargaining chip is to lower the BPO. You do that by meeting the realtor/appraisor with low comps and gently directing them to the flaws in the house and the price you are trying to target.
Brenda
I was there for the appraisal and it was a real appraisal not a realtor doing a BPO as I have seen in the past. The appraiser said he was supprised it came in so high in an "as condition". I guess the 2nd is the problem.... if they don't accept the $5500 I'm done with this one. Thats 1/4 of whats they are owed.
Thanks for the support!
"The appraiser said he was supprised it came in so high in an "as condition"
This could be their weakness.... and a place to begin. If the appraiser was surprised at the results of his own report... perhaps he could be convinced to revise his conclusion, downward, to a more realistic value...
I never accept the BPO or appraisal on it's face value... unless it works for me.
Then I'll say "thank you" and shut up.