2nd doesn't want to settle

gahometeam · #1 10-20-2007, 10:50 AM

Here's the scoop: Seller is disabled and wife's income can't support the property. They've moved out. Buyer sees approx $30-40K in repairs. The 1st mtg has accepted $260K and the 2nd won't budge off their 50% reduction on their balance. The 1st has offered the 2nd (CitiBank) $2000 to settle, but, CitiBank wants $20K.

Citibank and any financial institution in a secondary position has to fight hard to minimize their losses (and for the representative to get a pay check). But 1) it sounds like some of the rules are changing regarding how competiting financial institutions are manuvering through this chaos and 2) they know we know some of their rules and are therefore not going to play by them. So, does anyone have a suggestion on how to move this past the stall it's in? (The Seller doesn't care if the 2nd puts a Judgement against them for the difference because they're going to file bankruptcy and 2) There isn't any money left for the buyer to still buy this property, do the repairs and make it work financially). So, it leaves the 1st and 2nd to make this happen. The 1st has already taken $50K off their side.

Thanks

ericgreid · #2 10-22-2007, 05:04 PM

I find that investor buyers just want to buy cheap lock up the property in an impossble deal.
And it seems that it is the investor that says it will take 10 -20% of the value to repair the home.
The problem is the bank does not see the needed repairs until after agreement is reached.
I often send a full BPO with an outline of repairs and the bank often says our guidelines require x% before we will reveiw the package.

Solution: Get the buy to offer the needed $$
Ask the buyer to take a promisory note for the 10-15K