All Forum Posts by: Sean Dougherty

I am on B.I. I am currently investing in the local market. Feel free to contact me. I'd be happy to go over what I have presently, or help get what you want.

0 Votes

Kailua, Hawaii

Seller has 2 mortgages foreclosing.

Senior lien has been in foreclosure since 2012.

Both liens are around $350k each.

CMV $950k

Seller has financial difficulty and seems to think we can negotiate for a partial settlement from junior lien holder.

Can either payoff amount be negotiated considering there is equity in the property?

If so, which is better to start negotiations with?

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Seller has 2 mortgages foreclosing. Senior lien has been in foreclosure since 2012.

Both liens are around $350k each.

CMV $950k

Seller has financial difficulty and seems to think we can negotiate for a partial settlement from junior lien holder.

Can either payoff amount be negotiated considering there is equity in the property?

If so, which is better to start negotiations with?

0 Votes

Quote from @Chris Seveney:

Quote from @Sean Dougherty:

Not sure I am posting this in correct forum.

I am buyer in this situation:

My seller just went through a divorce and husband is not cooperating. Both names on title. Wife now has court approved authority to sell without husband's signature.

Did prelim title report. Junior lien popped up in husband's name. It was a personal loan from local bank. It is not a mortgage or home equity lien, but it is somehow attached to house. Title is telling me this lien must be paid in order for home to sell. With that lien attached there is no equity in home.

How does a personal loan become attached to real-estate? Is there a way to detach this loan from the home?

Bank can record a lien in the county of the property to attach it to the property. There is no way to detach it unless the bank and the ex-husband agree to attach it to another asset or pay it off. Why do you care if there is no equity in the property, it just means the seller is not getting any money from the closing.

If the junior lien can be detached or negotiated down then there could be equity in the home. If not I would get it as a short sale. In which case, still the senior lien holder will not payoff this junior lien.

That's why I care.

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Not sure I am posting this in correct forum.

I am buyer in this situation:

My seller just went through a divorce and husband is not cooperating. Both names on title. Wife now has court approved authority to sell without husband's signature.

How does a personal loan become attached to real-estate? Is there a way to detach this loan from the home?

0 Votes

Not sure I am posting this in correct forum.

I am buyer in this situation:

My seller just went through a divorce and husband is not cooperating. Both names on title. Wife now has court approved authority to sell without husband's signature.

How does a personal loan become attached to real-estate? Is there a way to detach this loan from the home?

0 Votes

Quote from @Wayne Brooks:

@Sean Dougherty As @Minna Reid mentioned, the 1st mtg holder doesn’t negotiate with junior liens, you or the agent/negotiator handling the short sale does. The lender simply agrees to or rejects whatever amount is shown on a proposed closing statement that shows them their Net.

I always told buyers they should expect to contribute additional money, above and beyond the purchase price, to get these junior liens settled.

Thanks for the info Wayne.

Would the senior lien holder ever pay a junior lien that is not a mortgage lien?

Would senior lien holder even allow me to pay off the junior lien in full and then short them on their lien?

0 Votes

Honolulu, Hawaii

Quote from @Minna Reid:

Well first of all, just because a judge gave her authority to sell without him, the lender doesn't care about that, and in a short sale there is a very high possibility he will still have to cooperate with the short sale, provide documents etc.

This is why I generally stay away from angry ex on mortgage situations. He can prevent this sale if he wants to be a jerk.

Also - Unless you can get the 1st position lender to view the private loan as a second mortgage, the lender will most likely pay nothing to the junior - you will have to. Try anyway - but odds of success are low.

However -the junior will likely accept a short payoff for a lien release, especially if they can still pursue the ex for the rest. How much they will do it for is a mystery. I like to start with a $500 offer - see where it goes. Be prepared that as the buyer, this will be an out of pocket cost to you and cannot go into the purchase price. Also these negotiations are not between the 1st and the 2nd, they will be between you and the second.

Thanks for that info.

If I were to negotiate the junior lien, would that be out of escrow and a completely separate transaction? Which means if I paid out of pocket to satisfy junior lien and then went into escrow and for whatever reason sale does not go through...them I'm out that payment.....Correct?

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Honolulu, Hawaii

Trying to wrap my head around this process.

I have a seller who has a home underwater. Selling via short sale. She is divorced an although husbands name is still in on title, she has court approved authority to sell home without his signature.

There were 2 junior liens attached to the home.

1) Child support liens of husband. We were able to successfully detach this lien from the house.

2) Lien from ex-husbands private loan ($20k). Is there a way to detach this lien from the home as well?

Should we attempt to detach that lien before we submit an offer to lender?

Or should we submit offer to lender and let them deal with the junior lien?

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Honolulu, Hawaii

Quote from @Rob Jacobs:

Quote from @Sean Dougherty:

Any advice on trying to convince a court ordered administrator to sell a home in probate via short sale?

It seems they would all prefer to let home go to foreclosure auction.

If there is no equity in the home, the only reason for the administrator to do a short sale is if it's a family m=home where they know all of the neighbors and want to have some control over the outcome. Otherwise, there's no benefit for them to go through the extra work. It is a little easier with aprobate but, still a lot of paperwork and a lengthy process

A short sale would be quicker than waiting for foreclosure, probably less paper work as well. Foreclosures take form 6 months to 2 years here in Hawaii. Foreclosures also require hiring a commissioner, scheduling open houses and a lot more.

0 Votes

Honolulu, Hawaii

All Forum Posts by: Sean Dougherty

Sean Dougherty has started 51 posts and replied 92 times.

Post: Wholesaler on Big Island

Post: 2 lenders foreclosing same time.

Post: Negotiating Senior and junior foreclosing mortgages

Post: Junior lien payoff

Post: Non mortgage lien payoff?

Post: Junior lien payoff

Post: How or "if" to negotiate junior liens in a short sale.

Post: How or "if" to negotiate junior liens in a short sale.

Post: How or "if" to negotiate junior liens in a short sale.

Post: Convincing probate attorney to short sale