All Forum Posts by: Account Closed

Socorro,

Negotiation with the second lender is similar to negotiation with the 1st lender, or the 3rd lender. You just need to determine the type of loan, (HELOC, recourse, non, recourse), and if you have access to the lender you call them up and negotiate.

Scott,

I have contacted the seller directly using tax records and finding his employer. He seems pretty attached to his agent or else she has warned him repeatedly about talking to others. He still has a good job so the GMAC people will hold out for the 30%. I guess I'll wait a week and then go back to him. The first has offered 3k, I'll offer 5k into escrow for the 2nd and let him go sign a note for the difference. Maybe he will go for that, I hope. He didn't seem like a bad guy but he did act like he was entitled to walk away from his debt. Guess I grew up different.

Scott

Finally managed to get through the paperwork and it seems you were correct about the 2nd having recourse. In an earlier e-mail to my agent the sellers agent told us the 2nd was non-recourse.

The house went back on MLS today offering the house with an approved 1st and available to the first person willing to pay the 16k 2nd, (of course that would have to be cash on top of their down payment).

I'm just a number to this sellers agent and as I mentioned before she is not a people person, nor very good about telling you what's going on. I'm back to my old sit and wait strategy unless there is some way I can contact and go buy that 2nd GMAC loan for 10% instead of the 30% they want.

Anybody got any ideas?

Thanks,

The sellers agent had told us many months back that the loan was used for purchase. After thinking about it a bit I believe that your suggestion makes a lot more sense if the 2nd had re-course. The county records didn't specify clearly but I'll dig into them a bit more and see what I can find out.

What kind of strategy would you pursue, (less then paying the 30% asking payment on the 2nd)?

Thanks for your reply.

The original 2nd was 60k and from the beginning they have been asking for 30% of the remaining balance or 19K less the 1st offer of 3k. This remaining payment kicks the price into uncomfortable territory for me and since the sellers agents skills of bargaining are nil I though there might be a chance to go directly to GMAC and purchase the loan myself, (after bargaining). Is it possible to do this? Or are these loans only purchased in bulk?

Unless the sellers agent is playing games with me, the 1st will finally forclose in at the end of my closing requirement, 30 days from now. There have been 5 postponements before but the bank has started cleaning up the property so I think the forclosure is near. I'd just like to work things out with the 2nd and forclose instead of bidding it out at the courthouse steps or bidding against all the other investors in REO's.

GMAC doesn't seem to care if they get wiped out by the forclosure but I'd like to try talking to them at least once. Any idea how I can go straight to the 2nd or am I doomed to just sit tight?

I jumped in as the third offer on a short sell house sitting empty for over 4 months. No expectations as I knew there was a 2nd lien but a month later I get a counter offer from the first that I accepted. At least I think so. The Sellers agent is a control freak and isn't actually a people person. Shouldn't I get a doc. from that first asking for earnest money down upon my acceptance? I haven't heard anything nor have I received my signed documents back.

I didn't get my hopes up but the sellers agent did tell me a day later that the 2nd had written off the loan. The banks counter offer gave 3k to pay to the 2nd so I started to think this SS might work. A day later the sellers agent calls me and now the 2nd has returned to their original request for 19k pushing this into an uncomfortable price zone for me again. (Sellers agent wants me to cover this) On top of that the sellers agent has turned incredibly cold on me telling me to make up my mind or cancel as there are others behind me that will take the deal. I asked for the seconds offer in writing but she told me it was verbal and I needed to make up my mind. I'm starting to wonder if the 2nd was this stubborn or maybe she had a friend that wanted to get in on my sweet deal that was showing signs of finally working out?

The agent has the seller in her pocket. Is there any way I can find out the status of the 2nd's lien? It's with GMAC.

I'd appreciate the help.

Looking at this straight on it looks like you are getting a deal here but there are some things with this Wanchovia loan program that are not quite right. Some of these incentives sound very similar to the incentives that got us into this mess in the first place and I suggest you think this over again. I could write a lot more on this but I'm heading off on holiday. I do remember that Mr. Mortgage wrote specifically about this Wanchovia refi deal on his blog just in the last week or so. I suggest you check it out. Just google "Mr. Mortgage"

I agree with your assessment that we have some more bad news to get through and the market probably still has some ways to go before you see complete capitulation but thats just how markets work. Right now you are seeing panic at work. Some companies are starting to sell at prices below their cash on the books. After a period you will see everyone wake up to that fact and the buying will start all over again. What burns me up is that the housing market can't, (or isn't allowed to), work itself out the same way. Did you notice how the S&P is dropping to historical prices in the late 90's? There wasn't really a stock bubble but the markets are working their way down to what the buyers and sellers will accept due to all this bad news. Now for the last 7 years they've securitized homes. Peoples mentalities have changed to a home as a high return investment instead of a place to park your furniture. The problem with a high return investment is that sometimes it just goes bust. Will these investment homes be able to work their way down to historical price levels? It doesn't look like they are going to let that happen. My feeling is that if they don't let this housing collapse work itself out, (like the stock market is doing now), we are going to be in this recession for a long time.

I would be a lot more sympathetic to the corporate executive if they told me what sacrifices they were going to make to turn themselves around. During the last Auto bailout, way back when, we had Iacocca who actually knew the right way to ask for gov't assistance. He asked for a handout like these guys but first he cut his salary to $1 a year and cut all of his executives salaries 10%. That way he could look everyone in his company in the face as he told them what needed to be done to fix things. I don't read anything in the news about AIG, various Banks, or the Big Three Automakers voluntarily making these offers. Maybe that's what we need to convince people to loan them some of our tax money.

Paul,

Say they have done the due diligence, priced the property and it's sat for 120 days. They change agents drop the property 15% and it sits another 120 days. FYI, I'm thinking jumbo loans here. Nothing is really moving in this Jumbo market and it's not looking good for the next 120+ days either so I'm wondering when you think we will start seeing some serious movement from the banks on letting go of these high upkeep jumbo homes?

Thanks, I beleive I'll follow the advice from both of you. I'm at a distance, China, and while I have friends and family in CA they aren't real estate inclined. Unfortunately Jake I'm looking in the San Diego County area near Poway as I'd like my folks to move into what I buy. I'm starting to see tax leins on a lot of these properties. Most assessed at 2007 prices are sky high. The lenders don't seem to have kept current after forclosing. Is that going to be an issue. Title should be clean I understand but back taxes after forclosure?