Need Negotiating Advice For Difficult 2nd (American General Finance)
preforeclosure--First foreclosing & says sale date to be end December. Owner just wants to out.
FMV = $110k
Owe = $105k
1st Chase = 94,500
2nd American General = 10,500
Spoke several times with American General branch manager. He has a lot of animosity toward the homeowners making him reluctant to even discuss the loan.
I sent draft hud1 w/ 6,500 going to american general which he turned down over the phone. Quote, "I'd rather charge the entire loan off than discount anything."
It's a matter of only 4,000, however, that amount could make or break this deal for me. Any suggestions for negotiating with difficult 2nd?
Thanks
So I take it that Chase is being more co-operative? Give the American General guy what he wants. Go to Chase and buy their first rather than paying it off. Have the homeowner give you a deed in lieu. Foreclose on American General and pay him nothing.
If a few thousand dollars is going to make or break a short sale for you... then, in my opinion, you are missing the beauty of and fail to recognise the opportunity of what a short sale offers...
And perhaps this is not a suitable short sale candidate.
[addsig]
The numbers seem tight without the attitude of the 2nd holder. You might do better hunting somewhere else.
If you get the place for what you were offing on the 2nd there is very little left for any minor repairs/clean up and the costs of selling.
John
[addsig]
That sure is a lot of work for a small return. The general consensus is to offer 80% of as-is value to the 1st lien holder. My first short sale we bought a perfect house for 119,500, the bank netted 116,000 after crediting us $3,500 for closing costs, and we have a house worth. $155,000. The bank was owed $160k and took our offer 2 hours after I sent it.
William,
What are you planning to do with the property? Have you spoken to Chase to see if they will assign the loan to you for less than what is owed? If Chase won't take less, I would pass on the deal. Even if there wasn't a 2nd, the LTV is still too high in my opinion (86%).
Good luck!
the second finally met my offer but chase wouldn't budge on the first---it was FHA anyway.
I was going to do the deal because the area is blowing up in value. Plus the owner had redone the entire interior really tastefully.
Anyway, as soon as I got the approval the owner decided to file bankruptcy. So I dropped the entire deal. Too much hassle, not to mention my hands are full with new deals.