My first lender (Countrywide) has approved the short sale. They are telling me that they will offer the second lien holder (Chase) $3000 and will not negotiate with them (is that true?). I owe the second lien holder $99K. They tell me that I am to send the offer to Chase and negotiate with them to get their approval.
Can someone with experience with these negotiations advise me on how to negotiate with the second lender? What should I tell Chase and what should I expect? What if the second lender does not want to accept the $3000 offer from the 1st lender? Thank you for your input.
 
Posted by T P on 01/01/2008 04:18 AM   Comments (2)  
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2 Comments on How to negotiate with 2nd lien holder once 1st lender has approved short sale?

JAN
02
2008

$3000 is FNMA guideline. Do not expect more. We have 2nd's ask us for $10k, $30k, $60k all the time... and they are usually very happy to get $3 to $5k. We paid $10k once.

but more can be had by: 1.  3rd parties giving up some of their fees e.g. realtors, escrow, friends. 2. have the buyer bring some extra to the table above the purchase price.

Be creative....

 
9:39pm • #1
JAN
06
2008
Ok, I finally got approval from both Countrywide and Chase for the short sale. But I have the following issue:
Countrywide is only approving seller concessions of 3% and does not allow me the seller to assist in closing costs in cash or promissory note, otherwise any money I bring in at closing would have to go to Countrywide. The buyers are insisting on getting 6% concession otherwise they will walk away. I am trying to find a way to get that missing 3% if we can not convince the buyer to lower their demands. We initially thought about reducing my realtor's commission and transfer it to closing costs as realtor's concession. Then I would pay my agent outside but my agent says that is against the law and her realtor will not allow it. So we are stuggling to find ways to get that missing 3%. Some ideas we thought of are:
- ask the buyers to increase the loan amount and roll the extra 3% in there. They don't want to do it.
- ask both realtors to reduce their commissions but the buyers' agent does not want to give up more than $1000. That's too little.

I'm willing to do anything to get this done but I am tied by Countrywide's requirements. If anyone can think of a solution, please let me know.
Thank you for your feedback.
2:40pm • #2


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T P

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