need help on my first deal

[nicholasgnz]

about the property:
value: 335,000

1st: 252,000
2nd: 63,000
payments & taxes behind: $14,000
total paof: 329,000
condition: good condition

just talked to countrywide (1st); they are going to fax me a SS package.  Rep told me they won't accept less than 82%, it has to be listed w/realtor, and can not have a second.
my question has to do with the part where they don't want it to have a second.
what should I do?
should i call second lienholder, and offer to settle with them for $5,640?
that should put me at the 60% mark.  
would they go for this proposal?
pls post your suggestions.  thank you.

[green queen]

dont settle with anyone yet............let me get a sleep i'll answer tomorrow.
thx

[green queen]

ok

Most banks will take 82% but did the say 82% of the BPO or amount owed.
When they say NO second, what they mean is you wil probably be allowed to give them $1,000 but no more, because if Countrywide are taking a hit then they dont want a 30k second getting paid off.

THis will reflect is your hud your are going to send them.

You probably only at the bottom rumg of the ladder here, so I wouldn't worry.

Get the SS package and complete it ( I presume you have done one before)

contact the second and let the know they are in 2nd position and the 1st is foreclosing, your offer to them is 1,000.

they will resist, once the BPO has been to the property and your mitigator gives you a short payoff on the  first, if you are stil getting resistance from the second, ask the first mitigator to call them.... they will.

just don't panic.

[nicholasgnz]

they didn't clarify if it was 82 of the BPO or balance.  I would think of their balance.
now, as far as offering the 2nd lien 1grand, At what do I pay them the 1,000 after they accept.  If I pay it before I've executed the SS transaction with Countrywide, I'll be risking $1000 or $5000 or whatever amount the 2nd lienholders accept.  But from your last statement, I'm getting the feeling that it will be worked out in the purchase agreement with the 1st lienholder.  You ask if Ive done a SS before, or completed one; the answer is this would be my first one.   I received 25 blank pages yesterday from the Loss Mit Rep.  Apparantly she placed them on the fax mach up side down.  Does anyone have a SS package from Countrywide?

[green queen]

well it goes back to my statement that your dealing with a low end mitigator.

You put on the P&S the purchase price, the HUD1 will show xxx going to Countrywide and 1,000 to the second.

they would both get paid at closing.

[nicholasgnz]

thanks a lot for shedding some light at the end of that tunnel.
I'll call them again for the SS package.  purch contract, no problem. hud1, no problem.  
What is the P&S?

[green queen]

purchase and sales contract / purchase contract...........sorry.

[green queen]

Also make sure your package is complete. Stevie has taught me how to build a kick [butt] package.
Everyone seems to send either not enough or incomplete packages:
This is how he sends his:

Letter explaining the offer and why
The SS package completed lender has sent.
hardship letter
P & S agreement  
HUD 1
repair estimates
Photographs of all repairs
3 comps ( low ) sold
3 comps ( low ) for sale
Sex offenders logistic from subject property
Tax returns  if avail
3 last pay stubs
3 months bank statements
REO net sheet


hope this helps

[nicholasgnz]

yes it does help a lot.  seems like i have to really work for my money.  i thought it was just completing the package, sending purch agreement, hardship letter, hud1, appraisal, and negotiate.  
But you're right about the comps and the pictures.  It does strengthen the case.  Do you normally email stuff to them?
I have to work on the sex offender list and reo net sheet. I've never seen an reo net sheet.  is it just a fee schedule outlining what the banks fees would be if they end up with the property?  Do you know where I can find a template.  If not, I'm sure I can figure it out.  
It would probably include:
foreclosure fees, realtor commission, repairs, monthly payments and taxes until sold, marketing etc...

[green queen]

yes sort of. yes it is everything they have up to date and future.
I have one but I can't give it out it's part of my coaching agreement. sorry.


Email your pictures in conjunction with your package, we are taught to scan and email which means they have everything in color.

[nicholasgnz]

Green Queen,
thanks for all your help.  I'm still waiting for the SS package from Countrywide.  Once I get it, I'll ge down to business.  thx.

[nicholasgnz]

got the SS request packet.  
Countrywide is actually asking for:
denial letter, hardship letter, authorization, employment /income/financial evaluation, irs tax returns 2 yrs, copy of listing agreement, copy of sales contract, va appraisal, hud1, additional info.
1) denial letter--there  are no denial letters; when people apply for loans, loan officer pulls up credit report, if credit is terrible, he simply tells customer can't do it. they don't give up denial letters.
2)listing agreement? why do they need this?
3) sales contract --isnt' this the same as the listing agreement? why do they need this?
4) va appraisal?--why are they asking for a va appraisal? i'm sure it's not a va loan that they have

is this a typical SS package request from countrywide??

[nicholasgnz]

I have a dumb question, but it is my first deal so.
My question is, they want me to fill out a borrower financial information, is this for the defaulting person (the homeowner) or do they want MY information (since I am the borrower also).  Although I will probably go HML if they don't accept a conventional loan for me.

They're also wanting me to fill out a HUD application to participate pre-foreclosure sale procedure form and a mortgage assignment program request for financial information from HUD.  

There is also a negotiation agreement that has to be signed by the borrower.  again, is that the homeowner in default or is that me??

pls clarify

[green queen]

Oh dear Nick we have a lot of work to do.
i will answer tomorrow, i am tired now.

But dont worry

[nicholasgnz]

get a good night sleep, I need you fresh tomorrow.  thx.