Question About Short Sale And My Personal Residence
I don't know if this is possible or not but here goes . I currently have an 80/20 loan on my house. We closed recently on it. The 1st mtg has a 1 year prepayment penalty, but the second in the amount of 28K does not, I can pay that down whenever I want. Is it possible to negotiate to buy your own note for a lower price ? Would this even make sense. My point being is that if I could get them to 25K I would save myself a few thousand dollars. Does this make sense? Any thoughts?
Thanks
Joe
Prepayment might be good...
My hunch is that prepayment will not lower your required monthly payment, but effectively shorten the term of the loan.
It will depend on the motivation of the entity that holds your 2nd. If I had it why would I sell it to you for $25K when the document states you owe me $28K especially when it is a new note and the payments are mostly all interest, (i.e. money in my pocket).
I would at the very least shop around the note to see if someone else would give me more money for it. Just speaking with a bit of business sense.
I would say it all depends on what their motivation is to sell if any.
Any advice on how to motivate them?
[addsig]
Motivation is different for all kinds of people and organizations. A pretty good motivator for most is not receiving payments, BUT you risk your credit, foreclosure and you risk the fact that they may not even sell it to you.
I think your best bet is to just pay it off a quickly as possible and save the interest charges. Where are you getting the $25K anyway to buy this note? Use that to pay down your 2nd.