Want To Negotiate W/1 And 2 Mort Holders Before Foreclosure
My niece owns a property in Sapulpa, Oklahoma. Turn of events in her life--divorce, loss of job, house in foreclosure w/sheriff's sale due 11/24. There is a buyer interested.
A recent broker for the buyer has had no luck with getting mortgage 1&2 reduced.
Facts:
Property appraised at $55,000
Balance of 1st: $49,000
Balance of 2nd $32,000
As you can see as it stands without negotiations with 1st&2nd, the buyer will go to Sale on 11/24 and hopefully obtain the property (buyer's motivation--sister lives right next door to property).
I would like to help my niece avoid foreclosure record--she has already moved out of the house and is not asking for money from the buyer.
If I can get 1st/2nd to accept lower amounts, do I ask for this in writing, what paperwork is necessary and what would be my next step? This could be a win/win for all, especially my niece and the buyer who would know she can get the property for sure. There is nothing in the deal for me--just want to help my niece.
I have been in a similar situation. Instead of the buyer's broker trying to deal with the bank your niece should call and talk to her mortgage companies about a short sale. The bank required the borrower to fill out a financial form to prove their hardship. Of course, in my situation we were negotiating with the bank earlier in the process. So I'm not sure if it may be too late for all that in your situation. I guess it wouldn't hurt to call the bank and find out.
Good Luck.
In my opinion, it is a bad idea to have your neice call the banks.
The banks aren't exactly excited about talking to someone in default, especially when she is asking for money from them.
YOU need to call the bank, get an auth to release info, find out the exact figure, go see the home, take pictures, tell them why you think it is worth less that she owes.
Call the banks, ask for the loss mitigation dept, see if they have a "Short Sale" packet.
Do what they say in the packet, have her write a hardship letter explaining her situation.
THEN mail it and follow up.