I have a possible short sale deal in the works.
1st position is @ 150K with Homeq
2nd position is @ 50K with HSBC
Can anyone tell me the possible trouble with having a first and second mortgage to deal with when
doing a short sale.
House is valued at 195k. 3 months behind.
I am thinking of offering the second 3k and the first 120k.
Any and all thoughts or comments are welcomed.
Thank you in advance!!
The first will most likely tell you to pound sand. Their money is safe given the info you provided. HSBC will not settle for $3K… at least they didn’t settle for me that low. $20K on a $80K debt. They most likely will tell you that they are going to attend the auction as a negotiating tactic.
You did not mention if foreclosure procedings have started, or it they have, who filed. It matters. If the 2nd files before the 1st you’re SOL.
If the property has 2 loans- when i goes to foreclosure -the llenders know the 2 will be wipe out and the only stand is going to be is the 1 rst- thats why the negotiation is coming on base this numbers.
By the way I have a question how do you make sure be pay your commission whether the lenders do not like see coommission fees at the HUD…? if the property has a lien for instance HOA . how it works? if has to be paid prior negotiation -or everyting is incluide in the price offer…??
I am presently working with both Homeq and HSBC on two different loans but like your situation Homeq is 1st and HSBC is 2nd and the numbers are very similar.
Homeq has been easy to work with but very slow. Stay on them or you will be forgotten. If the home is in good condition with little to no repairs shoot for a 10%-15% discount from the loan amount.
HSBC seems to like to play hardball. They were very nice but my 1k offer for their 60k position was dismissed. They said it was not worth it to them. Their own BPO was less than the 1st positions’ payoff amount yet they still will not budge. They seemed more concearned about how much I was offering the 1st position. I told, as nicely as I could that it did not matter what I was offering the 1st because payoff was more than the BPO. They did not care. They then implied that .10-.20 cent on the dollar was more inline with my offer to the 1st. I am taking this to mean they feel my offer is so low that they want a piece of my pie. Still working on this one. If I get a good enough deal with the 1st I will increase my offer. I still hate being robbed like this. OK its not robbery, they just want to recover as much as possible, but it still hurts.
Bovine, I have the same problem with HSBC. They are just not easy to negotitate down 2nd positions. Have you rec’d a counter from your $1k on their $60k balance or have you increased your offer?
How far away is the foreclosure sale on your deal?
They have made no counter offer. I am willing to up my offer if I can get the 1st lender to short their position enough.
The auction is 2 months away.