Contact the Temecula short sale specialists at Realty Works Temecula. A Short Sale allows you to sell your home for less than you owe and can save your home from foreclosure. Certified HAFA Short Sale Agents can now also negotiate $3,000 for you at the close of escrow.Call the Temecula Short Sale Specialist,Sidney Kutchuk broker at Realty Works Temecula.41720 Winchester Rd #J,Temecula Ca 92590
Temecula,Murrieta,Menifee,Wildomar, Temecula Short Sale Expert.
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Wednesday, October 27, 2010
Playing Chicken with the banks
Playing Chicken with the banks.
I am currently working for a client on a short sale. This seller has lost his job and can not keep his home.
Due to his job loss he does not qualify for a loan modification and he does want a foreclosure on his credit.
The easy part was finding a buyer,that done the seller provided me all the documents required by his lenders
to process the short sale.He has two loans.He took out a 2nd loan on the house when the market was at the top.How his home is worth less than half of what he owes. So far his senerio is like many other short sales that I process.
It took less than 60 days to get the 1st lender to give me a short sale approval. It's a good approval.The lender will will forgive his debt and pay the costs of the sale including my commission and give the 2nd lender $5,000.00
Here's were I hit a snag.Most 2nd lenders release for $3,000 to $5,000.00 Some times they will also ask the seller to carry a small note in order to release their lien. Well this junior lien holder wants $15,000.00 to release or no deal."Houston we have a problem".
First remember I said the seller has no job,well he also does not have the extra $10,000.00 his 2nd lender is asking for.The first lender will not allow more than $5,000.00 to go to the 2nd lender.I call the 2nd lender ask whats their solution.They don't care were the funds come from they repeat.I know what they are are asking even though they would say it,because they know it's illegal. They want the agents,the buyers,the buyers lender,uncle Moe and the seller to kickback funds to them outside of the escrow. So were playing a game of chicken right now. I will keep you posted via a follow up blog on this game of chicken. Your comments / ideas are welcomed and will be read.