Deep Discounts From Banks
I have had a few people tell me that banks will sell for 50cents on the dollar. I have done 4 shortsales and they have only come down 10-15%.
Has anyone got a bank to disount thier loan by half
Yes I have but it is all-dependent upon the type of property. Most deep discounts come from properties with physical distress.
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I have on a number of occasions got a junior lienholder to discount below 50%. Right now I am doing one where the lender is settling at about 25%. Earlier I negotated a short sale which fell through when the seller refused to sign the deed (grr) but that was for $1000 for a $45,000 mortgage or roughly 2%.
I'm still fairly new to the game and have had little luck negotating first mortgage holders much less than 90% of the PBO