All Forum Posts by: Herm M.

Mike, thanks. That's the answer I was looking for.

James, I don't see how anything you said relates to my question. But thanks anyway.

Let's say the lender has an offer at full BPO price, and they are willing to accept that price.

What are the chances that the investor (Freddie, Fannie, etc.) may turn down the offer? It should be really slim, right?

You're going to need a land trust.

The negotiator at the first said that the 2nd can get a maximum of 8% of the balance, which will be about $6100.

The first is willing to pay the entire amount in case the 2nd asks for it.

And the loan on the first will be considered "settled."

It seems like this question has been popping up lately: What are banks accepting on short sales vs. the BPO amount?

There's really no answer, it varies case by case.

I think we need to create a thread where people post 3 things:

1) Lender name.
2) BPO amount.
3) % of BPO offered.
4) Was it accepted?

This will give us all a better idea.

^ Thanks.

Thanks, Scott. Does it make a difference that the HELOC was a purchase-money HELOC?

Thanks Justin.

Regardless, I'm not concerned. The HELOC balance was about $75,000...so with the 6 missed payments, it's now at about $78,000.

The current HUD shows a payoff to the 2nd at about $2500. So the worst thing that could happen is that the 2nd asks for 10% ($7800), the first says that they will not take the hit, and I lose $5000.

Not a big deal, but I hope they'll accept the current payoff. Reason:

They didn't do their own BPO. They simply requested the BPO from the first (because it's also Chase). They'll see that the BPO is $285,000, and the offer is at the full BPO amount.

If they don't accept the current payoff, what are the chances that the first is willing to take a $2k-3k lower payoff in order to fulfill the 2nd?

Thanks for the info Will.

There's no sale date on this property as of now, maybe I should of tried negotiating. But since it's my first deal, I'll just take it the way it is.

As far as funding, I know if a bridge lender who charges 1%. Or I might use a family member.

I don't mind using you, if you'd match the 1%.

The negotiator said she wants to close this by March 31st. She's going to get an approval from the investor (Fannie/Freddie, whomever it is) in 7-10 days. That gives me atleast a 30 day escrow period to line up the end buyer's funds.

Will, have you heard of On Time Escrow in Orange County?

They said that I must use a land trust to get this done properly and in timely fashion.

The other thing I'm waiting on is for an approval on the 2nd. Do they usually settle for 3% of the loan amount? That's what I've been told.

Thanks everyone.

I'll let y'all know when it closes.