If
you are like me, you've probably become aware that in the Sherman Oaks
Short Sale market there are many properties where the ultimate decision
cannot be made by only one party. Many of these homeowners find that
after searching the Nine Alternatives to Foreclosure in Sherman Oaks
that their mortgage relief options are now only one... the short
sale... and that after signing with a great Pre Foreclosure Specialist
agent, marketing the home aggressively to get top dollar quickly, that
the bank that holds the first and the lender on the second lien cannot
agree.
Now what?
One of the pitfalls that some agents find is that when they are upfront and generous in the beginning that often the greed of the lenders will kill a deal. If the first offer to the second was low instead of high then there might have been a way to get around the demand for too much money to get the deal closed. This means that best practice may be to present to different closing statements to the first and second lender.
Show the first and larger lien holder a large sum going to the second and show the second lien holder a tiny offer. To negotiate in this manner it is more likely to get to a reasonable amount that both will be happy with.
The trouble that some inexperienced or untrained agents may find is that
when they receive a great offer at a market price and have plenty to
meet the demand of the first lender, they pay that through the closing
statement and naturally pay the remainder to the second lien holder.
There is nowhere to go but downhill form there if there is no more money
on the table and the lenders aren't happy.
If on the other hand, starting from a better negotiating stance we show the first lender that the second is getting a large sum, we can easily meet the first lenders expectations if we have presented the second lender with a far smaller sum and come up from there.... make sense?
For example: Closing statement one given to the first lien holder shows the first lien holder that the second will receive $20,000. Closing statement two that goes to the second lien holder shows them that they will receive $3000. If both are unhappy and each demand a different sum can you see how this will smooth things out? If the first demands that the second only receive $6000... the starting place of $3000 would mean that you have fought hard to get the second two times the original offer.
If this kind of negotiation doesn't work it is often a best case to get both parties on the phone together and let them work it out.
Considering a Sherman Oaks Short Sale?
It's easy to get more information. Simply send me an email to vincemceveety@gmail.com or give me a call at (310) 272-4935 and you can find your best option and make the right decision for you at this time.
Peace to you and yours,
Vince McEveety
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