I got my approval from Select Portfolio today but the approval letter makes no mention to paying off the second lien holder. I thought it was supposed to reflect this? Or is it just reflected on the HUD. Now I need to deal with the 2nd lien. Do I just send the packet and approval letter to them and wait? Or can we move forward. My approval is only until the end of the month!
I don’t have the answer but the same question – the 1st is with Countrywide and the 2nd Banco Popular.
Hope someone responds.
I did submit the packet to the 2nd. I’m wondering if they can kill the deal? All the short sales I’ve done - never had a second - I actually avoided them. What is the normal timeframe for them to respond? The typical 30-to 60 days? Our first approval expires on the 30th. The Realtor seems to think we shouldn’t tell the buyer anything until the 2nd is approved but I on the other hand think the buyer should line up financing so when we do get approval we can close within a few days. ??? :banghead
Don’t take my word for it but my realtor told me that the 2nd typically will require 10% to go along with the short sale. While you’re buying, I’m actually the one in the foreclosure situation on a Rogers park condo so I will soon know for sure.
Curious to find out then. Most as I understand take 1k and move on. 10% on our deal wouldn’t be much - only 1,500 so that won’t be too much trouble - however we did only offer 1k
You generally need to send in the second SS when the first is sent, as it can often take as long. I have had acceptance letters from two separate lenders in first place and the second mortgage lender sold the note at the last minute to another lender!!! This happened to me twice, same week!! One of them I still have time to work on, but the second one no matter how I tried to have the sale date postponed, they said not until they get the release of lien from the second. And it went to sale this past Monday!
All along the second was telling me not to worry that it sometimes only takes a day once the negotiator gets the file. I called twice a day to try to push it through. I sent letters with Urgent sale date across the top and still nothing. Alot of times these people really do not care, they take home their paycheck at the end of the week.
Good Luck
Who is the second? Some second lenders take just as long as the first and some can give you answers and an approval in hours. It all depends. Providing a copy of your approval letter from the first to the second can help to speed things up sometimes.
Also, what did you offer to the second and whatever that amount is, who is paying it? Typically you want to get the first to pay the second off. In your case this will prove difficult since you would need to get an upated approval from the first to reflect this…which as you already know…could prove difficult.
2nd is Homeq. I did include the approval with the packet to them -also the HUD. The first agreed to pay the 2nd 1k.
Homeq will take time on the second unfortunately. You will more than likely need an extension on the first.
I was dealing with Homeq as a second and at the last minute they sold it to Saxon. I had to start the whole process over with Saxon, and they just delayed everything until it went to sale!! They knew the sale date and didn’t process it quick enough.
I am having problems with BOA on a 2nd. so far we have offered 10K on a 60K 2nd and they still said no, plus it takes them at least 3 weeks to reply. Anyone know BOAs magic number on 2nds.
First mortgage company will “NOT” allow short sale if secondary lender is receiving full boat. If second lender will not cooperate threaten bankruptcy on them. Second mortgages are basically treated as credit cards in BK court and are wiped out without question for a total loss to them. Play hardball, it feels good.
Update. FOr sure Homeq is playing around. I have faxed over the documentation they wanted 4 times and still say “well we received one thing but not the other” I remember now why I stopped working deals that had seconds that were different than the first. They just about never work out. I have so many like this and none are working out so well. The firsts are getting approved no problem but the seconds are kicking my a**.
Ocwen, the second and Aurora the first. Ocwen doesn’t agree with the offer because they claim the house is worth too much. In actuality the offer is just about 100% of the current value. They asked for an updated CMA, so we’ll see. It stinks though because it holds up everything. The first, Aurora is getting ready to settle.
Another deal I have where the first is Central Finance and the second is wells fargo. The first is cooperating but Wells wants 15% of what they owe because they say the owner has too many liquid assets. In essense they don’t - there looking at raw land the owner owns, a whopping 70k in value but they owe 125k for all of it. I will negotiate it down : ( Any advice to any of these scenarios would be greatly appreciated. I think I’ll go back to staying away from these type of deals.
Also forgot to mention - can the seconds dictate what commissions are allowed vs the first? I have the first fine with 6% however the second will only allow 4% another first that is fine with the 6% commission however the second will only allow 5%?
I am new to this whole SS stuff… However I enjoyed reading these posts… Thank you.
Please take my comments below for what they are worth… I do negotiations for a living… However not in real estate.
I guess they can dictate whatever they want - never forget that they don’t have to accept your offer for less than what they are owed. So if they want only offers submitted in pink envelopes, they can dictate that also…
Can we really “threaten” them with anything? if I understand it correctly you are offering the 2nd pennies on the dolar. so wouldn’t we be “threatening” them that they may lose those pennies? not sure how much leverage the investor really have with the second. I do understand that to get $1k is better than getting nothing… But I don’t think they would lose their sleep if they don’t get that $1k… Am i missing something here?
thank you all for the discussion… It has been very informative.
have a nice evening!
Another update. Now the deal might flop. The second has taken so much time to get their stuff together - the auction is Fri the 18th and the first will not extend unless they receive an approval letter from the second before then. The second stated that they need another 10 days to get in the approval. They gave me a verbal several times - just that they needed to do all their internal paperwork prior to submitting the actual approval. I’ve faxed over 2 extension requests to the first explaining that the buyer is ready, willing and able to move forward; they even paid for their inspection and appraisal and the lender is ready for docs. The underwriter is not impressed. She wants to take it to foreclosure. WHAT!!! :banghead Any suggestions. I can only beg and tell them it’s not in anyones best interest to go to foreclosure so many times.
Any chance we can close the first, pay the second 1k through the closing without paper approval. Long shot question I’m sure?
Any of those who have kept on this - well the first gave up on the second and so do I. The auction is Friday and the first is not willing to extend it. I can understand the first’s position but the situation does get under my skin when a buyer has waited through a three month process - is ready to close but because the second has dragged their fee, the deal goes to foreclosure and we all lose. I’m feeling frustrated with these lenders. I went to the top dogs for both lenders and with the second - I could only get a verbal approval and that they had to do their internal paperwork before putting it in writing. The first asset management department said the second had plenty of time to get out an approval and they are no longer waiting. Again, I can understand the first position but looking at it from my side as well - why foreclose and have the house sit around for months and get less than what they would have had if they didn’t foreclose. I guess it’s the chance they are willing to take? :banghead