I’m preparing to negotiate with a bank who is holding both the 1st & 2nd mortgage. Can anybody advise me on what to say or what not to say to the bank while negotiating? Do you think it is a good thing that one bank has both mortgages or a bad thing? Please share your advise and stories regarding this matter. Thanks in advance!!!
Bad thingTypically you are able to severly short the second and get something out of the first. However, my family in MIA was just turned down by a lender that held both the first and the second and lumped them together in the foreclosure filing.
I guess that it depends on your market, as well. The lenders in MIA still think that the market is hot and that they will come out ahead by taking it to foreclosure instead of a decent reduction in a short sale. If you are in a slower moving market they may think differently.
Thanks for the advice!