I am having a problem on a short sale and would like to know how to avoid it next time. The first mortgage gave me a price and a net they would allow. The home sold for enough money to get them the price and their minimum net they said they had to have. We put together the closing statement with the first receiving what they wanted and the second mortgage receiving $9,600.
The second had asked for $15,000 and are saying that they won't accept less than that. Any suggestions on this one? What would have been a better approach? Maybe offer the 2nd a smaller amount to start? I used the same HUD to present to both, getting the firsts approval first. Please advise. Bonnie.
Hey, Bonnie. Here is what I would do to avoid this in the future. Put together two separate closing statements, one for each MTG company. The first mortgage would see a proposed closing statement with $20,000 going to the second mortgage. Meanwhile the second mortgage would get a proposed closing statement with them receiving $3,000 and the rest going to the first mortgage.
Obviously they are going to get the same HUD at closing. But you start negotiations with each mortgage company thinking that the other mortgage company is getting a huge sum. You meet in the with the final closing statement. They will both be happy because they are getting more than they had originally expected. Now what can you do now to close this short sale?
This second mortgage negotiator is being a little unreasonable. Most second mortgages only receive $3,000 normally. They should be more than happy receiving $9,600. Remind them that they get zero in a foreclosure. Show them the docket status for the foreclosure case. If the house is close to foreclosure, then you gain more negotiating power. Another thing to do is get both of the negotiators on the phone. Have them hash it out between each other. That worked for us on a deal before and it might work for you too.
The second had asked for $15,000 and are saying that they won't accept less than that. Any suggestions on this one? What would have been a better approach? Maybe offer the 2nd a smaller amount to start? I used the same HUD to present to both, getting the firsts approval first. Please advise. Bonnie.
Hey, Bonnie. Here is what I would do to avoid this in the future. Put together two separate closing statements, one for each MTG company. The first mortgage would see a proposed closing statement with $20,000 going to the second mortgage. Meanwhile the second mortgage would get a proposed closing statement with them receiving $3,000 and the rest going to the first mortgage.
Obviously they are going to get the same HUD at closing. But you start negotiations with each mortgage company thinking that the other mortgage company is getting a huge sum. You meet in the with the final closing statement. They will both be happy because they are getting more than they had originally expected. Now what can you do now to close this short sale?
This second mortgage negotiator is being a little unreasonable. Most second mortgages only receive $3,000 normally. They should be more than happy receiving $9,600. Remind them that they get zero in a foreclosure. Show them the docket status for the foreclosure case. If the house is close to foreclosure, then you gain more negotiating power. Another thing to do is get both of the negotiators on the phone. Have them hash it out between each other. That worked for us on a deal before and it might work for you too.
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