how do you approach the 2nd lienholder when there is a 1st & 2nd on SS?
do we simply say, "my name is xxx, calling on behalf of HO, you are 2nd lienholder to property in preforeclosure, i’m arranging SS w/1st and I’d like to settle with you for $1,000. "
what do we say?
do I need to ask them for a SS package also?
does settlemt information with 1st need to be included somewhere to notify 1st?
what documents are needed to completely get 2nd out of the way and just deal w/1st?
or do we deal with both at the same time?
Before the second will consider doing a short sale you have to order a payoff from the first mortgage company.
Then you tell them what the first lien holder is willing to allow them to have in order to make this a successful transaction.
so if i know the 1st is willing to take 82k on a $100k payoff amount. I call back 2nd and tell them I’m willing to payoff the 2nd for 2k on a 30k amount in order to make this deal work?
let’ say value is $140,000.
would i then have to fill out a SS pkg for 2nd?
This is a several step process. Don’t be intimadted by that, just realize it.
Charlotte is right, get the payoff of the first with the complete total due (not the short-sale amount). Then work the 2nd mortgage showing them the high payoff, your low comps, your high repair quote, and let them know they can have $1K because the first said so. See how that conversation goes.
When working Short-Sales, most people want a step-by-step process, but the problem is we can’t produce one, because we never know how the deal is going to turn out. What I mean is, maybe the 2nd will short, maybe not. Maybe the 1st will short, maybe not. No one knows. That is why we live by this rule:
We head in all directions at the same time, and how the deal will wind up, will show itself in time. So you’ll be working on the 1st and on the 2nd, at the same time. Don’t have smoke coming out of your ears, don’t get frustrated, it’s just how we work this business. Welcome to the life of Short Sales.