Short Sale: 2nd lender=extortionist?

[SD Realtor]

Krysten what Jim pointed out was much more the exception then the rule. There is a balance you want to strike when trying to get a short sale through when there are two lenders. Remember the first is always going to want all the money and they are in a position to be that way because they are in first position. As long as all the money is on the FINAL hud then that is what is most important. In that way everything will be accounted for and above board.

[sdduuuude]

It isn’t extortion, but like the earlier poster said, it is a bit of poker because if you walk away and foreclosure happens, the second lender is screwed. Possible to ask the first lender to pitch in, or start over and submit a new offer that specifically says the first lender must pay the second lender from the purchase price. Your strategy will depend on how much “action” there is on the property, too.

Also, don’t be afraid to ask all realtors to pitch in some of their commission to make the transaction happen.

But, before asking for concessions from the first lender and realtors, make sure everyone believes you can and will walk away.

[sdduuuude]

It isn’t extortion, but like the earlier poster said, it is a bit of poker because if you walk away and foreclosure happens, the second lender is screwed. Possible to ask the first lender to pitch in, or start over and submit a new offer that specifically says the first lender must pay the second lender from the purchase price. Your strategy will depend on how much “action” there is on the property, too.

Also, don’t be afraid to ask all realtors to pitch in some of their commission to make the transaction happen.

But, before asking for concessions from the first lender and realtors, make sure everyone believes you can and will walk away.

[sdduuuude]

It isn’t extortion, but like the earlier poster said, it is a bit of poker because if you walk away and foreclosure happens, the second lender is screwed. Possible to ask the first lender to pitch in, or start over and submit a new offer that specifically says the first lender must pay the second lender from the purchase price. Your strategy will depend on how much “action” there is on the property, too.

Also, don’t be afraid to ask all realtors to pitch in some of their commission to make the transaction happen.

But, before asking for concessions from the first lender and realtors, make sure everyone believes you can and will walk away.

[sdduuuude]

It isn’t extortion, but like the earlier poster said, it is a bit of poker because if you walk away and foreclosure happens, the second lender is screwed. Possible to ask the first lender to pitch in, or start over and submit a new offer that specifically says the first lender must pay the second lender from the purchase price. Your strategy will depend on how much “action” there is on the property, too.

Also, don’t be afraid to ask all realtors to pitch in some of their commission to make the transaction happen.

But, before asking for concessions from the first lender and realtors, make sure everyone believes you can and will walk away.

[sdduuuude]

It isn’t extortion, but like the earlier poster said, it is a bit of poker because if you walk away and foreclosure happens, the second lender is screwed. Possible to ask the first lender to pitch in, or start over and submit a new offer that specifically says the first lender must pay the second lender from the purchase price. Your strategy will depend on how much “action” there is on the property, too.

Also, don’t be afraid to ask all realtors to pitch in some of their commission to make the transaction happen.

But, before asking for concessions from the first lender and realtors, make sure everyone believes you can and will walk away.

[Djshakes]

[quote=MrsKryten][quote=DataAgent]How is this extortion? The 2nd lender has legal rights to the property. They are offering to release those rights at a discount to the owed amount. Sounds like you’re getting a good deal.[/quote]

If I can buy the house with all payments documented as part of the sale, then it’s all good. My concern is that the 2nd lender wants an undisclosed payment, and that is illegal. I’m going to snap out of the negative thinking for now until I find out the details on Monday.[/quote]

So you want to make sure it is reported so you have to come in at a higher appraisal price and pay taxes on that additional $20K? Be careful what you ask for. If you are going to pay out the $20K, pay it out and have them record the house at the initial offering.

[Djshakes]

[quote=MrsKryten][quote=DataAgent]How is this extortion? The 2nd lender has legal rights to the property. They are offering to release those rights at a discount to the owed amount. Sounds like you’re getting a good deal.[/quote]

If I can buy the house with all payments documented as part of the sale, then it’s all good. My concern is that the 2nd lender wants an undisclosed payment, and that is illegal. I’m going to snap out of the negative thinking for now until I find out the details on Monday.[/quote]

So you want to make sure it is reported so you have to come in at a higher appraisal price and pay taxes on that additional $20K? Be careful what you ask for. If you are going to pay out the $20K, pay it out and have them record the house at the initial offering.

[Djshakes]

[quote=MrsKryten][quote=DataAgent]How is this extortion? The 2nd lender has legal rights to the property. They are offering to release those rights at a discount to the owed amount. Sounds like you’re getting a good deal.[/quote]

If I can buy the house with all payments documented as part of the sale, then it’s all good. My concern is that the 2nd lender wants an undisclosed payment, and that is illegal. I’m going to snap out of the negative thinking for now until I find out the details on Monday.[/quote]

So you want to make sure it is reported so you have to come in at a higher appraisal price and pay taxes on that additional $20K? Be careful what you ask for. If you are going to pay out the $20K, pay it out and have them record the house at the initial offering.

[Djshakes]

[quote=MrsKryten][quote=DataAgent]How is this extortion? The 2nd lender has legal rights to the property. They are offering to release those rights at a discount to the owed amount. Sounds like you’re getting a good deal.[/quote]

If I can buy the house with all payments documented as part of the sale, then it’s all good. My concern is that the 2nd lender wants an undisclosed payment, and that is illegal. I’m going to snap out of the negative thinking for now until I find out the details on Monday.[/quote]

So you want to make sure it is reported so you have to come in at a higher appraisal price and pay taxes on that additional $20K? Be careful what you ask for. If you are going to pay out the $20K, pay it out and have them record the house at the initial offering.

[Djshakes]

[quote=MrsKryten][quote=DataAgent]How is this extortion? The 2nd lender has legal rights to the property. They are offering to release those rights at a discount to the owed amount. Sounds like you’re getting a good deal.[/quote]

If I can buy the house with all payments documented as part of the sale, then it’s all good. My concern is that the 2nd lender wants an undisclosed payment, and that is illegal. I’m going to snap out of the negative thinking for now until I find out the details on Monday.[/quote]

So you want to make sure it is reported so you have to come in at a higher appraisal price and pay taxes on that additional $20K? Be careful what you ask for. If you are going to pay out the $20K, pay it out and have them record the house at the initial offering.

[moneymaker]

It seems to me that it is possibly extortion. The 20k should be going to the first, to qualify as extortion I believe there has to be pressure or coercion. Of course if it’s the government doing it,i.e. IRS then I guess it’s ok.

[moneymaker]

It seems to me that it is possibly extortion. The 20k should be going to the first, to qualify as extortion I believe there has to be pressure or coercion. Of course if it’s the government doing it,i.e. IRS then I guess it’s ok.

[moneymaker]

It seems to me that it is possibly extortion. The 20k should be going to the first, to qualify as extortion I believe there has to be pressure or coercion. Of course if it’s the government doing it,i.e. IRS then I guess it’s ok.

[moneymaker]

It seems to me that it is possibly extortion. The 20k should be going to the first, to qualify as extortion I believe there has to be pressure or coercion. Of course if it’s the government doing it,i.e. IRS then I guess it’s ok.

[Author]

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