Information please on a short sale with two positions

[1locator]

I have a possible short sale deal in the works.

The details:

1st position is @ 150K with Homeq

2nd position is @ 50K with HSBC

Can anyone tell me the possible trouble with having a first and second mortgage to deal with when
doing a short sale.

House is valued at 195k.   3 months behind.

I am thinking of offering the second 3k and the first 120k.

Any and all thoughts or comments are welcomed.   

Thank you in advance!!

[wheelema]

The first will most likely tell you to pound sand.  Their money is safe given the info you provided.  HSBC will not settle for $3K... at least they didn't settle for me that low.  $20K on a $80K debt.  They most likely will tell you that they are going to attend the auction as a negotiating tactic.

You did not mention if foreclosure procedings have started, or it they have, who filed.  It matters.  If the 2nd files before the 1st you're SOL.

Good luck!

[JJP]

If the  property   has  2  loans- when i  goes  to foreclosure   -the  llenders  know  the   2 will  be  wipe out  and  the  only  stand   is  going  to  be  is  the  1 rst-  thats   why  the  negotiation  is  coming  on  base  this   numbers.
By  the  way  I have  a  question how  do you  make  sure  be  pay  your  commission  whether  the  lenders  do  not  like   see  coommission  fees   at  the  HUD..? if  the  property  has  a  lien  for  instance   HOA  .  how  it  works?  if  has  to  be  paid  prior  negotiation -or everyting  is  incluide in  the  price  offer...??

[bovine]

I am presently working with both Homeq and HSBC on two different loans but like your situation Homeq is 1st and HSBC is 2nd and the numbers are very similar.

Homeq has been easy to work with but very slow. Stay on them or you will be forgotten. If the home is in good condition with little to no repairs shoot for a 10%-15% discount from the loan amount.

HSBC seems to like to play hardball. They were very nice but my 1k offer for their 60k position was dismissed. They said it was not worth it to them. Their own BPO was less than the 1st positions' payoff amount yet they still will not budge. They seemed more concearned about how much I was offering the 1st position. I told, as nicely as I could that it did not matter what I was offering the 1st because payoff was more than the BPO. They did not care. They then implied that .10-.20 cent on the dollar was more inline with my offer to the 1st. I am taking this to mean they feel my offer is so low that they want a piece of my pie. Still working on this one. If I get a good enough deal with the 1st I will increase my offer. I still hate being robbed like this. OK its not robbery, they just want to recover as much as possible, but it still hurts.

[DJP]

Bovine, I have the same problem with HSBC.  They are just not easy to negotitate down 2nd positions.  Have you rec'd a counter from your $1k on their $60k balance or have you increased your offer?

[Tien]

Bovine

How far away is the foreclosure sale on your deal?

[bovine]

They have made no counter offer. I am willing to up my offer if I can get the 1st lender to short their position enough.
The auction is 2 months away.