How To Deal With Mechanical Lien?
If a property has two mortgages and a mechanical lien. How do you deal with a mechanical lien?
Do you still do the authorization letter, and is it still referred to as "short-sale" when dealing with them or would you approach it differently?
I once bought an assignment of a $25K ML for $1K, then bid the property up at courthouse sale, such that I collected $18K in surplus funds.
It is possible and certainly profitable to short a subordinate encumbrance.
If you want to own the property...One other approach would be to "release the property" from the encumbrance, but let the judgment stand against the owner. That can usually be done for pennies on the dollar.
[addsig]
In CA there are a lot of odd rules.
The one that killed me was a "mechanic" could file the lien today and back date the effective date to 1.5 yrs ago. Kinda cool
do you notice that homeowners will allow you to take it off the property and associate it with them? I guess my problem is I feel bad doing that because I know they cannot afford anything right now, who says they will be able to afford even pennies on the dollar?
discount the mechanics lien and reflect the pay off on the hud -
"Is there a benefit when the lender is out of state, as opposed to right down the street??? "
No. I would think a local lender, if it was a small, holder and servicer of mortgages, would be more inclined to consider a loss mitigating workout than a distant, impersonal mortgage loan servicing organization.
I agree with SSPro in general but the idea of Lenders being in state or out of state is really an old one. Most lenders are national and are "out of state" regardless where their office is.
Not many local mom and pop lenders except fo some credit unions.
In my opinion, location of the lender is irrelevant to a short sale.