Suggetions!? 2nd On Short Sale Won't Budge!

Comments(5)

• 
  TheShortSalePro24th July, 2003

  You indicated their counteroffer. What had been your Proposal to the 2nd? Was it fully supported? Was it directed to the appropriate individual?
  
  You don't indicate the as-is, fair market value. What's it worth in it's as-is condition? The ARV is immaterial.

• 
  RESolutions24th July, 2003

  To: SS Pro...my original settlement offer to the second was $5k..on the 24k balance...the house in its current condition is approx 100-104K...and needs 10kish in repairs...Fully supported? as in a BPO?..no...I gave them the Paperwork ffrom the foreclosing atty, showing the balance due and I gave them the estimates of the repairs. I have been in contact the first time with the collections person handling the account, and the second time to the assisstant manager of collections...Who was told by her manager to counter at 21k....I am told that there is no loss mitigation or foreclosure dept. Could this be because it is a credit union?
  
  Thanks for any help....
  Anita
  
  [ Edited by RESolutions on Date 07/24/2003 ][ Edited by RESolutions on Date 07/24/2003 ]

• 
  pmatheson124th July, 2003

  You say the 1st is ready to deal? If you can buy 1st at a discount, do it. You continue with forclosure. Several things could happen, none bad for you.
  
  1. You wind up with ppty, for what you paid the 1st.
  
  2. 2nd or somebody else bids at the sale. You make the amount of the discount on the 1st.
  
  3. The above assumes you are in a state where the loan cant be brought current. If loan can be brought current, and it is, you are now a LENDER for the length remaining on the loan. (Could tie up some serious Money.)

• 
  pbodys24th July, 2003

  Hey RESolutions,
  You stated:
  
  [quote]
  On 2003-07-24 15:36, RESolutions wrote:
  
  I have prepared my whole SS package for Bank of Amer. the only thing I am missing is the settlement release letter from the 2nd. the 2nd is thru a Credit Union. About 2 years ago they gave the seller a 125% loan on the equity of her house. Well the appraisal at that time was high compared to the value of the property. Well now the mortgages are upside down the house is worth about 110k ish (ARV)...and has 10k in repairs. The first is up to 93k and the 2nd is looking to setttle for 21k on a 24k mrtg. the first person I pleaded my case to and told her the house would be forclosed on if we could not make a settlement said..."Oh Well"...the second person I spoke with (higher up the ladder) said.."Well if it goes to foreclsoure So Be it...we'll just charge it off".....Does this make sense to anyone out there that knows Short Sales?...Does anyone have a suggestion as to what my next step would be?
  
  Thanks in advance for your help...BTW the 1st is sitting by with baited breath to do a deal....go figure
  
  end quote:
  
  as stated in your posts:
  "Well the appraisal (at that time) was high compared to the value of the property"
  
  What is the appraised value NOW?. That's what's important. You say that the house has a 1st of $93k and the 2nd is willing to do $21k, that's $111k. If the house needs $10k in repairs then that's what you should be basing your request on.
  
  The appraisal should come in around $100k.
  Once you show the negative value and report the condition of the house, maybe the 2nd will budge a little more.
  State that for you (or your buyer) to purchase this house, you'll need them to settle for at least $7k....you may then be able to neg. up to about $10k where they maybe happy with.
  
  ....there not budging because at this point the house is not yet into foreclosure...
  Concentrate on the degrading condition of the house and the financial hardship of the sellers....
  
  Hope this helps,
  Clif

• 
  RESolutions25th July, 2003

  Thanks for your input Clif. There is a foreclousre date set..however it is about 50 days out. Perhaps as time gets closer the 2nd will be more apt to negotitate....
  
  Thanks to all for you input as well. I appreciate being able to come here to this forum to get ideas and answers!
  
  Anita
  Jax, FL