Does anyone have any (or know of anyone who does) experience negotiating judgment liens down to pennies on the dollar (NY state if that makes a difference)…these are two credit card liens. I used to have the number of a guy who negotiated 2nd mortgages very successfully but can’t seem to find the number.
Also, do 2nd mortgages always come first before liens or is it always by the file date?
I negotiated a few credit card liens on one of the properties I bought several years ago. However, I only got about a 25% reduction (not pennies on the dollar) and it took several months of negotiating. After first contacting them and not being able to negotiate down the lien I told them I wouldn’t be able to do the deal. I contacted them a couple months later and told them I was trying to salvage the deal before it went into foreclosure and they were a little more agreeable.
Many of these liens are owned by collection agencies who bought the debt as pennies on the dollar and know that when you offer to negotiate it means the house is being sold and cannot be sold until their lien is paid off. They really have very little to lose The only thing that scares them is foreclosure since then the lien is wiped clean.
Remember, before trying to negotiate on behalf of the owner you need an Credit Release Authorization or similar document signed by the owner giving you authorization to negotiate on the owner’s behalf.
jmd_forest
These liens can be a real pain. Your best bet if you want them done fast is to call the collection company and ask who the VP or President is. Hang up and call back and ask for them directly. If someone asks tell them you are a old friend and at least get into there voicemail. If you get them directly explain that the property is going into foreclosure and if they want to regain there position they will need to pay off the first and the second. Then my next line is “I have someone that might be interested in BUYING OUT THE DEBT. If I can get you payment TODAY what is the lowest you would take for that?” If they say something stupid tell them “Nevermind have a great day I will call you if there are other deals. We are already paying to much for the property. If you would like I have already done the research on the property. And you need to come up with $,.00 to get the property and regain your position. We are willing to give you $___.00 for the debt. Not to mention the owner is now as you can see not in a good position and is filling BK!” You will get it done in no time…
Hope this helps