Assistace On My First Short Sale Offer
I have just received all the paperwork that the first and second mortgage holders want in order to consider a short sale offer I'm about reasy to make. It's my first, so please understand i am by no stretch of the imagination an expert. Here are my questions:
1) The first is held by Countrywide Home Loans. I listened to a Jeff Kaller preforeclsure audio series and it said Countrywide won't discount more than 18%. Has anyone out there done short sales with Countrywide and can you verify that percentage?
2) Countrywide is also asking for a letter from all the junior lien holders stating they will aceept nothing. Countrywide is currently owed $240,000 and Bank One the second mortgage holder is owed $122,000. Is this common for the first to require the second take nothing and put it in writing? It's hard for me to understand why Bank One would do this.
3) The home appraised for $379,000, so does anyone have any thoughts on what I should offer Countrywide? I was going to see if they'd take 82% of the $379,000 based on the Jeff Kaller audio tape i heard stating 18% was the deepest discount they ever consider. Perhaps that's asking too much of then if the second takes nothing?
4) Finally, does anyone have experience where the first mortgage holder requires the junior lien holders to take nothing? How do I go about telling the second holder? Do I just call them or do I submit all the short sale paperwork they are requiring and within that paperwork tell them I am offering noting because the first is demanding that. If anyone can explain how I discuss this demand from Countrywide with the second mortgage holder, Bank One, that would be greatly appreciated.
Thanking you in advance,
Tony
The first probably won't discount much, if at all. Why would they? There is absolutely zero motivation for them to accept a nickel less than they are due.
The second mortgagee might consider accepting less....
Much depends on the as-is, fair market value of the property.
If the second mortgagee is 100% certain that the house is worth $379,000... they would come pretty close to being made whole at foreclosure sale...
If they were to conclude that the property is worth less than that, say, $359,000 or $349,000, they would more readily consider accepting a short sale proposal.
[addsig]
The "as is" value on the property now is $330,000 which is aboutnwhat the BPO done by the second mortgage holder came in at. We are trying to get estimates now for finishing work that needs to be done on 3 rooms which we feel will be in the $20,000 range. Assuming the value is adjusted to $310,000 based upon the repair estimates do you still feel both banks will take the same position?
The first mortgagee has zero exposure... and no incentive to accept less.
You'll have to fight to get the second to agree that the as-is FMV is $310,000 in light of the recent BPO, but that should cause them to consider a preforeclosure short sale.
Thanks for the insights.