In the past few weeks it has become quite clear that Lenders are playing under a different set of rules, at least the Junior Liens (2nd Lien Holder). In the past they would take $3,000 from the first lien and hop away happily that they got something.
Oh, how that has changed !
It is very common now for the Junior Lien to demand a much higher payoff, even it they risk a foreclosure. Why? How does it make sense to do this and risk getting nothing?
The short answer is that they are not negatively affecting their bottom lines, rather it is being enhanced. It is quite a simple process. We, as agents, are working for our clients. The Lenders are working in large numbers.
Follow me: In the past the Junior Lien could approve 20 Short Sales receiving $3,000 on each for a total of $60,000...today they will demand $30,000 from each in cash or $75,000 in a Promissory Note. Well, if 3 out of 20 agree to the cash, the Junior Lien just took in $90,000. They will have a higher percentage agree to the Note which they can then sell to a Collection Co. and net even more.
So you see, to us it is a breathing person that needs relief,
to the Lender it is an entry in an Excel spreadsheet.
Sidney Jimenez, CDPE
www.RoadtoForeclosureRelief.com
www.SidneyJimenez.com
Contact Me: 954-665-9449
Or Send Me an Email to Go Over Your Foreclosure Relief Options: Info@SidneyJimenez.com
Sidney Jimenez is a Certified Distressed Property Expert and can help you with all your options to avoid a Foreclosure in Pembroke Pines, Miramar, Coral Springs, Margate, Davie, Weston, Southwest Ranches and the neighboring cities in South Florida. You can count on Sidney’s expertise to handle your Short Sale, he’s “Delivering Winning Results”
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Sidney, the seconds here have all of a sudden been much tougher as well. Nice post