Property Manager · Tempe, AZ · Member since 2015 · 26 posts · 6 votes
I came across a deal knocking doors on the pre-foreclosure list, and in negotiations with the seller, she wants enough money to pay off all her debts from the sale of her manufactured home. In order for this deal to really be a win for her, I need to pay off her debts. In order for it to be a deal for me, there needs to be more margin than what I'd get paying enough to settle her debts.
Here are the numbers:
45k ARV
5k Rehab
15k home loan
12k credit card debt
4k car loan debt
The clearest way to both help them out and make enough margin for me is to get third party authorization and negotiate down the credit card debt. However, I've never negotiated with a bank. I haven't talked to the homeowner about this yet, so I don't know if/how far behind they are. Without knowing this important information, what is the best advice you have on how to negotiate with the credit card company, and what I can expect them to come down to?
You need to find out the status from the seller first. If they aren't behind on their payments or there isn't a reason behind the deficit, you're going to have a hard sell to the cc company that their money is at risk. If the seller is behind and the story is reasonable, the sell should be pretty easy, but what you can negotiate down to will be dependent upon the company that holds the debt.
I dont have a good suggestion for you - last time I encountered this situation, the negociation was done through the title company's attorney. I would imagine that as an individual, you would probably need a limited power of attorney, then you could call the loss mitigation department (or whatever it is called) and discuss on behalf of the seller.