I’ve been reading this site quite a bit and notice that in a SS, the 2nd mortgage holder is normally offered $1K. Is this a magical number or just a starting point?
We have a SS we are working with Wells Fargo (1st mortgage holder at $147K) and Beneficial/HSBC at $17K. We offered Beneficial $1K and they have countered with $14K. The ARV is $155-$160K with repair costs of roughly $35K. Any suggestions for convincing Beneficial to take less than $14K? Thanks for any advice!
From what I have read on this site, HSBC can be a-holes. Even though they are in the 2nd position they seem to want to ride it out.
Given your estimates and comps, fax the lawyer in charge of the forecloser with your ATR and request a payoff statement. Present this along with yours comps and the rest of the short package. Inform W.F. that Hsbc will only allow 1k to the junior position. Also try and speak with a higher up on the food chain. If they will not budge just leave it alone for a few weeks.
What are your plans for the 1st? Work both at the same time and if the 1st gives you a short number show it to the 2nd.
counter them with $500, maybe they’ll get the point :biglaugh
usually offer to jr is (amt * .10)