Santa Clarita Short Sales are getting more interesting as we experience the Junior Lien holders (second loans through thirds) joining the ranks of the major leagues. (hardball)
When the current short sale market started up again back in late 2007, 2nd mortgages were happy getting anything they could for the most part. We had some banks settling, during our negotiation attempts, for pennies on the dollar. Out short sale sellers were elated and it was never even discussed that they might need to bring money to the table to satisfy a second lien holder.
Fast forward to today’s more streamlined process with the different Internet based systems that have been created to help the large banks and realtors with systems called “Equator” and “res.net”. We are watching as the firsts are becoming easier to deal with only to have the seconds raise their shields.
We were on a conference call recently where the banks negotiator from the second told us he would let us in on a little secret. Those in the room with Paris and I leaned forward, towards the speaker, expecting the 2nd’s bottom line to come out of the negotiators mouth. He said, “I have authorization to settle with your client for 70% of what they owe.”.
That was no prize steer for sure. Heck, that would have came to about 70k. I explained that if our clients had 70k, they would not be selling short…
This is not the only case and point. We are experiencing this on other files with other banks. Where it used to be a “smoke and mirrors” game between us and the seconds, we are finding some junior lien holders would rather the property foreclose than accept less than their line in the sand indicated.
However, having someone that can pitch a total strikeout game is always a plus to have in your short sale corner. That is why Paris is the negotiator for all of our short sale sellers.
By the way, remember that 70k line in the sand? After Paris finished with the negotiator, after the 10th conference call, throwing terms like deed in lieu and “sellers that don’t care anymore of the outcome”, she had this second agree to accept $3,000.00 ;-). In these cases it is always our short sale sellers choice to pay or not. We are working for our sellers. Their happiness is the reason we have the referral based business we do in the first place.
As an aside, I love the new WordPress interface for the iPhone.