You’re Strongest Bargaining Chip When Negotiating With Second Mortgages
New Castle County, DE – In our blog post a few days ago, we talked about a first and second mortgage that both wanted more money out of the deal. The problem was they were asking for it at the other’s expense. In a sense, we had two monkeys with their hand in the same cookie jar. Neither could get their hand out without the other’s cooperation. So, you have an impasse until someone gives in.
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
Here is what happens if both parties stubbornly refuse to compromise. The first mortgage forecloses on the house and sells it as a bank owned property. They get the full value of whatever the house sells for. The second mortgage gets zero! Yep, that’s right. Because they are a second mortgage, their right to the property is removed thru Foreclosure. Now, I’m sure you’re asking, “Then why would the first mortgage even give them a penny? They shouldn’t even negotiate with them!”
Here is why it does pay them to negotiate with them. It pays to do so. It takes 6-12 months to foreclose on a property. 6-12 months of lost interest earnings is a lot more than paying $3,000 to $9,000 to the second mortgage. So, that is your ultimate bargaining chip to use against the second mortgage. We even tell them that if they don’t accept the offer and the home is foreclosed upon, then we will report them to their boss.
Thinking about a short sale?
I can help you short sale your property and get back on your feet. Send me an e-mail at wesell@teamsordelet.com.
I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have.
Or, if you prefer, you can call me at 302-476-2057
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification?
Our
Thanks for reading this, David Sordelet.
David is a Real Estate Consultant with The Team Sordelet Realty Group at Prudential Fox & Roach Realtors.
Phone: 302-476-2057. Email: wesell@teamsordelet.com.
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David Sordelet specializes in loan modification assistance and short sales in
David Sordelet, Prudential Fox & Roach Realtors, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why? Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding Foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision. You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.

