I’m doing a short with WAMU. They only want to pay $1,000 to 2nd lien (balance is $120,000). What can you tell 2nd lien for them to accept $1k? 2nd lien will probably say “$1k is totally unacceptable”.
Should I say the usual as far as take this or nothing…bla bla bla
Should I say this is a non performing asset…bla bla bla
Need help from someone that’s been successful at persuading 2nd lien to take $1k. Thank you.
I got the 2nd lender (EMC) to take 1K on the $40+ they were owed.
Are you paying the first in full or shorting them? If you are shorting them, they basically have no choice, it really IS either the $1k or nothing, because the first lender is the one foreclosing, I’m guessing, and the 2nd won’t get a thing if they take it back.
The way I had structured it was to short the 1st and short the 2nd.
The 1st wants it all and only wants to pay the 2nd $1k.
What do you tell the 2nd under these circumstances.
Basically, without the cooperation of the 2nd, there is no short sale.
Doesnt it make sense for the 1st to share the wealth so that
we can execute a short sale?
That’s basically what we had. The 1st insited on full payoff, and we shorted the 2nd 1K. We just showed them a HUD with the amounts, and the 1st lender’s payoff letter, and that was it. They approved it the next day.
payoff letter and HUD. Ok, at least it tells me that it can be done. Thanks for sharing your experience.
Hi Joe,
How long did WAMU take to respond to your Short sale package. And what is the total time frame for them? We submitted a SS package two weeks ago and no response so far.
Your reply is appreciated
Took about 2 weeks after I submitted the package, to call me, give me a verbal ok and tell me they wouldnt give me an answer until I got a lien release from 2nd; and this took longer.
I was going back and forth with WAMU loss mit rep and another lady who was not a LM rep. This other lady would call the client etc… When I would call this woman, she would tell me to talk to the LM rep; but the LM rep did not have a direct number, just a voice mail. So it was pretty challanging trying to get a hold of the LM rep.
Thank you for the response. Who is the Second Lender? I have WAMU in the first place and BB&T in the second place.
How long did it take to finish the whole process?
in my experience the 2nd almost always waits until the day before the auction before they accept the short sale and they don’t always accept it.
they’ll put up this front that they can’t accept a short sale but at the last minute when they know they’re about to get nothing they’ll usually take the something being offered over the nothing they’ll get the next day.
By this time its most likely to late to do the deal. The 2nd has no power to stop the auction (unless they pay to bring it current). So that leaves you scrambling around trying to contact the 1st and ask them to postpone the auction. And in my experience the larger national lenders and servicers will not postpone with only a few hours left before auction.
A 2nd will almost always accept a short sale if you pay them enough. And therein lies the problem. Are you willing to pay more right now to lock up the deal. Or are you willing to wait it out in hopes that they will come down before the auction. Whichever you decide just make sure you let the homeowner know what could happen.
Hi JoeQ
I did a ss with WaMu before but the LM rep just gave me 10% discount from the BPO. How did you convinced them to accept your low offer?
I had discounted the 2nd with WAMU (they had the 1st and 2nd). But then as soon as I went back to them to tell them i had an authorization from the 3rd. They told me the 2nd had been sold to another lender so I had to start all over. They wanted full amount on the 1st.