Replies to This Discussion

Permalink Reply by Lorena Tankersley on October 18, 2010 at 2:09pm

Sara, your assumption is correct. If you are doing the shortsale for both 1st and 2nd, your client shouldn't pay any longer. Doing a short sale on both is not any harder than doing it just for one. Now, keep in mind that the 1st may pay for the 2nd - usually between 3K-5K. and if the second wants more, that is negotiable with your buyer or a split between the buyer and the seller agent. So, the HUD to the 1st make sure you start with 5K towards the second....
Hope that helps :)

Permalink Reply by Stacie A. Kramer on March 30, 2011 at 2:59pm

Sorry, Lorena, I have to disagree with some of what you've said. Unfortunately, whether this be HAFA or traditional short sale, 2nd lienholders are not settling for less. They are asking for promissory notes for release of lien, although these are unsecured loans at that time. The 1st lienholders are giving $6,000 to 2nd lienholders to release lien. Most are accepting that to release the lien and then the sellers can negotiate with the 2nd after closing on the payoff and possibly negotiate the 2nd down, then, or at least lower the payments/interest/etc. These are very difficult, but this seems to be the norm with all mine. I hope this clarifies everything for you.