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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Negotiating with bank? Posted by Ward-CA- on July 23, 2001 at 10:09 AM In Reply to: Negotiating with bank? posted by Bryan on July 23, 2001 at 9:26 AM : Hello, : I have a person who is in the pre-foreclosure stage who is willing to sell me thier property. My question is can I negotiate a lower payoff with the persons bank? And if I can, how do I go about doing that. : Thanks for the help, : Bryan =•=•=•=•=•=•=•=•=•=•=•=•= Bryan, if a lender agrees to take less than what they’re owed from a sale conducted during the foreclosure, but before it goes to auction, it’s generally done as a “short sale”. The concept behind a short sale is that the property’s current value is worth less than the money owed against it. That means the owner has no equity and the lender’s equity has diminished to less than their loan balance. Therefore, the lender’s attitude is, if the owner has no equity then not even a penny should be going to them from the proceeds of the short sale. So they want to see that all the paperwork generated in the offer, escrow and closing processes reflect that fact that the owner is getting nothing of value out of the short sale. If the owner agrees to such a sale then contact the lender directly to tell them what you want to do and get their agreement to get the ball rolling. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Hello, : : I have a person who is in the pre-foreclosure stage who is willing to sell me thier property. My question is can I negotiate a lower payoff with the persons bank? And if I can, how do I go about doing that. : : Thanks for the help, : : Bryan : =•=•=•=•=•=•=•=•=•=•=•=•= : Bryan, if a lender agrees to take less than what they’re owed from a sale conducted during the foreclosure, but before it goes to auction, it’s generally done as a “short sale”. : The concept behind a short sale is that the property’s current value is worth less than the money owed against it. That means the owner has no equity and the lender’s equity has diminished to less than their loan balance. : Therefore, the lender’s attitude is, if the owner has no equity then not even a penny should be going to them from the proceeds of the short sale. So they want to see that all the paperwork generated in the offer, escrow and closing processes reflect that fact that the owner is getting nothing of value out of the short sale. : If the owner agrees to such a sale then contact the lender directly to tell them what you want to do and get their agreement to get the ball rolling. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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