I have a deal where the homeowner has a 1st for $130k and a 2nd for $40k, which was taken over by their mother! How do I get the 1st down low enough that mom can get her money back? The property is currently listed for $180k with no offers. Thank you.
My fear is that the 1st will say that the mother will have to take a discount first before they will consider it. It makes sense, but the homeowner won’t go for it.
They WILL say that. The first will NOT take a loss, if the 2nd doesn’t. The 2nd is NOT in a position to negotiate, as if the 1st forecloses, they will not see anything at all.
Thanks for the info. I lost the deal anyway, though. They have a realtor and I called him to let him know what I was doing and that I wanted a purchase agreement. He was really nice on the phone, but then I got a call 2 minutes later from the homeowner saying the realtor chewed them out and that they don’t want to deal with me now. :banghead I’m a newbie, so I don’t know how I should have handled things differently. Any input?
Whenever I do a deal I make sure that I am the ONLY REPRESENTATIVE the have! If they are listed with a Realtor I tell them to get rid of them if they want me to work for them. If they are listed with anyone else, or if any other short sale person had them sign anything I want to see it. As you just learned, other contracts of any kind are a pain in the ass.
My thoughts/process exactly. If you want to list it, list it, if you want HELP, cal me. 
I have ONE that I have that is listed still, and it was not listed when I started it. I actually gave permission to re-list b/c I wasn’t getting too far with Carrington f/k/a New Century. I did get them down 70K, but not down far enough for it to work for me. (They owed 260, Carrington countered with $183 net, didn’t work for me. Its now listed at 194,900, with not much interest. FMV is about $210, but maybe not as $199K didn’t draw much interest either) ANyway… back on topic, yeah, I agree with F.N. they either work with you exclusively, or a Realtor, not both.
Whenever I do a deal I make sure that I am the ONLY REPRESENTATIVE the have!
There is certainly nothing wrong with looking for a good investment opportunity, but this should not be confused with you representing the current property owner. in order to do that you must put their welfare ahead of your own at all costs, that is a fiduciary representative. A Realtor in fact serves that role by definition.
As I am not a Realtor I bound by a fiduciary duty. But that doesn’t mean I don’t look out for the homeowners best interest. I have been known to complete short sales and make absolutely nothing for doing so simply because that was in the best interest of the homeowner and the only way to get them out of foreclosure.
The reason I am so strict about the homeowner not having any contracts or agreements with anyone else is because I have enough to deal with fighting with the lien holders I don’t need a third party making things more difficult for me. I even go as far as to instruct the homeowners to have no contact with any of their lien holders without my permission while I am working on their case. I have them refer anyone, banks and all, to me to discuss any issues related to the property.
When conducting a short sale it is important to control all aspects of the deal or you will see it unravel in front of your eyes.
If the deal makes sense then I would let the homeowner know that I am going to contact the realtor directly. Then call the realtor to see what their intentions are and to inquire as to whether they truly know how to facilitate a shortsale? The majority of realtors don’t know how to short a prop. Then offer assistance as a paid consultant to mitigate on behalf of the realtor and homeowner.