I’m working on a deal, where the second is playing hard ball. The second is not with a typical mortagage company, but with a bank that doesn’t have a mitigation department. The bank consider’s the loan a home equity line of credit (I feel this is the same as a second). The bank is American General and they are trying to play hardball, even though they are the second. Is there anyway around them. The homeowner has not defaulted on this loan, but has defaulted on the 1st. I would appreciate any ideas.
You need to make it clear to the 2nd mortgage holder that the first is in default and likely to go to foreclosure. If that happense the 2nd has two options; buyout the first to protect their position or walk away with nothing. It doesn’t really matter if the 2nd is held by a mortgage company, a bank or a private individual they are still in an inferior position and at risk to losing their entire investment.
That is your problem, they have not defaulted on 2nd yet. You can not discount until it has fallen behind. you need to try to make them understand the 1st is behind, but until the 1st falls into foreclosure and they are behind as well, they will probably not take you serious. we have had that problem before, they never budged it went to auction and they were wiped out- because they are in SECOND POSITION! You would think they would know this, but i guess they would rather roll the dice
American General would rather sell their loans at a discount than pay it off short. I’m not sure why because fifty cents is fifty cents no matter how it gets into their pocket.
Try to purchase the loan first from the local American General office. You can find the address on a recorded copy of the subject mortgage. The managers at AmGen are responcible for all the loans generated from their store. It effects their bonuses.
If the local manager won’t help you go to their corporate office, I think it’s in Minn.
Mellon head just made me remember, the first Short sale we ever did- Thats what we did, contact the office that originated the loan- we did a short sale 1 week before close! (seller didn’t inform us of 2nd mortgage, we already had it sold and Title company found lien) I’ve never seen it happen again, but I’m wondering if it was the same company. It wasn’t easy, and it was a lot of phone calls and fighting- but it was done!
Thank you guys, great advice. I made the mistake of no doing all of my homework on the property. I had a title search ran at the last minute and found out that the homeowner had 3 other liens on her property. This destroyed the numbers and turned the property into a bad deal. But, thanks for all the information.