What are some of the things you say to the second lien holder when you are negotiating for the SS? The second is trying to attach the homeowners wages and I’m was wondering if the house goes to auction would they still be able to do that. He is also filing bankruptcy, so should I use that as leverage for them to take a payoff. The second is about 7k what should I offer them, 500?
Thanks
I did not know the bank can attach wages for a defaulted mortgage. If that was the case, people would be screwed daily with this.
So if the second doesn’t want to budge on their payoff…Are you more likely to
A.) say, ok then I’ll see you at the sherriff sale when we all get nothing.
B.) offer to pay more $$$
what other options are there?
Have you gotten the first to accept a short sale? If so have you shown the 2nd the commitment letter from the 1st?
I use the letter from the first if the 2nd is being tough and explain that there is not enough cash to to pay them off. If it goes to sale they will be left with zero. The first will show indicate how much they are willing to let the 2nd have. Show this to them and negotiate from there.
If the amount is over the dollar figure agreed to by the 1st you or your end buyer will have to pay the difference and it will be shown on the left side of the HUD 1.
The first is always going to start by saying they will not give more than 1k to the second. Most of the time they are lying…especially if you can show them that they will still meet their net requirements. I always start the game by telling the first that the second won’t accept less than $2500 then I tell the second that the first won’t give more than $1000. If I can’t get the first to budge then I get the 1k max in writing, ie the approval letter and submit to the second. If the second won’t budge then you will have to find a way to get them the difference either from the homeowner, you or the end buyer etc.