I have a short sale situation where the first lienholder is saying that it's my responsibility to have the second lienholder release their interest in the mortgage.

What would be the incentive for them to do that? How should I approach it?

Phil

The biggest incentive for the second to take a discount is the mere fact that "if" they were to complete the foreclosure process the second lienholder would be wiped out and receive "zero". (Unless they bid at the acution to secure there position) There are cases that I know of that "Countrywide" would accept the short sale under the agreement that the second only receive $1000.00.

So the incentive for the second lienholder would be.... hmm should I take the discounted money ie: $1K, 2k or whatever or zero? Perhaps approach it by having your title co. draw a HUD showing the payoff's they would receive. Take the payoff, release the lien or take "ZERO"....after foreclosure.

Great Class so far huh!!!


Pete_Vegas

The 1st or the 2nd ?
It would seem if you can not get the 2nd to give up the postion
Then there is not a point in talking to the 1st

Thanks for the posts.

If the first mortgage holder has no interest in 'doing a deal' with the second lienholder, how do I progress the deal?

I don't think I can....

Phil

For the most part you will not run into a situation in which the first and the second will not work together. You may find that the second will ask for $ 2,000 or $ 3,000. If that is the case and the first will not help, ask the seller to come up with 2,000 or $ 3,000 to make this problem go away. They may be able to borrow the money from a friend or sell something. Remember when things seem like there are no answers think outside the box. That is what will make you successful, your ability to think under pressure and your versatility. - Coach Dan G