Is It Attainable To Negotiate A Payoff On A Second Mortgage?
Good afternoon, I am Dennis Pierce right here from Pickett Street Properties and my business associate, Jesse Moore. We are Seattle’s leading short sale team. We’ve got a fresh new topic today. Not too long ago we had a contract on a short sale, a first and a second. We submitted the packet to both lienholders. About two weeks into it the client walked away for some reason. This isn’t an uncommon occurrence. We just kept pushing that file forward within the hopes that we’ll get another purchaser quickly. Hopefully by the time we get approval we are able to say we now have a brand new purchaser under the same terms. Sadly this did not happen on this file. I did get an approval from the 2nd, and the first countered back however there was no purchaser to reply to their counter offer so they needed to shut the file. This allowed me to contact the 2nd and allow them to know the seller walked away. I asked out of curiosity if there was any likelihood they might go away. They had been going to make about $4,000 - $5,000 in the short sale process and I used to be trying to find out what it might take for them to release the lien on my client’s home so we’re only dealing with the primary position lien holder.
We were attempting to create fewer moving elements so after we do have a purchaser in place it’s much easier to move forward with the first. In this case the 2nd lien was $50,000 and they accepted $5,000 saving my client’s $forty five,000 worth of debt. Also now I have a one position short sale. It must be easier to market the property and get an approval. I do not get paid in any respect, but it is extremely fulfilling to tell the client that we had been in a position to get rid of ninety% of their balance on the second loan. In some instances if we get rid of a second, it’s not a short sale. Occasionally it could possibly put them in an equity position.
So this is our process and our concept for the day; lien release or negotiated payoff. If you are considering a short sale, one factor chances are you’ll think about doing is contemplate how many liens you will have after which generate a relationship with the people on your 2nd or third lien holders. You possibly can negotiate with them that you will pay them greater than they might receive in a short sale in order for them to release the lien. This would put you in a greater place for short selling or just selling without financial institution approval.
Thanks very much for visiting Pickett Street, where we are Seattle’s leading short sale team. If you have any comments or questions about what we talked about, throw them in the comments below or you may give us a call. Thanks and have an awesome day.
For more information on short sales and how to avoid foreclosure, visit the Pickett Street Properties blog or you can also contact Pickett Street and get started today.
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