BiggerPockets

I jumped in as the third offer on a short sell house sitting empty for over 4 months. No expectations as I knew there was a 2nd lien but a month later I get a counter offer from the first that I accepted. At least I think so. The Sellers agent is a control freak and isn't actually a people person. Shouldn't I get a doc. from that first asking for earnest money down upon my acceptance? I haven't heard anything nor have I received my signed documents back.

I didn't get my hopes up but the sellers agent did tell me a day later that the 2nd had written off the loan. The banks counter offer gave 3k to pay to the 2nd so I started to think this SS might work. A day later the sellers agent calls me and now the 2nd has returned to their original request for 19k pushing this into an uncomfortable price zone for me again. (Sellers agent wants me to cover this) On top of that the sellers agent has turned incredibly cold on me telling me to make up my mind or cancel as there are others behind me that will take the deal. I asked for the seconds offer in writing but she told me it was verbal and I needed to make up my mind. I'm starting to wonder if the 2nd was this stubborn or maybe she had a friend that wanted to get in on my sweet deal that was showing signs of finally working out?

The agent has the seller in her pocket. Is there any way I can find out the status of the 2nd's lien? It's with GMAC.

I'd appreciate the help.

Thanks for your reply.

The original 2nd was 60k and from the beginning they have been asking for 30% of the remaining balance or 19K less the 1st offer of 3k. This remaining payment kicks the price into uncomfortable territory for me and since the sellers agents skills of bargaining are nil I though there might be a chance to go directly to GMAC and purchase the loan myself, (after bargaining). Is it possible to do this? Or are these loans only purchased in bulk?

Unless the sellers agent is playing games with me, the 1st will finally forclose in at the end of my closing requirement, 30 days from now. There have been 5 postponements before but the bank has started cleaning up the property so I think the forclosure is near. I'd just like to work things out with the 2nd and forclose instead of bidding it out at the courthouse steps or bidding against all the other investors in REO's.

GMAC doesn't seem to care if they get wiped out by the forclosure but I'd like to try talking to them at least once. Any idea how I can go straight to the 2nd or am I doomed to just sit tight?

Thanks,

The sellers agent had told us many months back that the loan was used for purchase. After thinking about it a bit I believe that your suggestion makes a lot more sense if the 2nd had re-course. The county records didn't specify clearly but I'll dig into them a bit more and see what I can find out.

What kind of strategy would you pursue, (less then paying the 30% asking payment on the 2nd)?

Forgive my ignorance. How does one go about negotiation just the second? Is it the same as doing a short sale?

Socorro,

Negotiation with the second lender is similar to negotiation with the 1st lender, or the 3rd lender. You just need to determine the type of loan, (HELOC, recourse, non, recourse), and if you have access to the lender you call them up and negotiate.

Scott,

I have contacted the seller directly using tax records and finding his employer. He seems pretty attached to his agent or else she has warned him repeatedly about talking to others. He still has a good job so the GMAC people will hold out for the 30%. I guess I'll wait a week and then go back to him. The first has offered 3k, I'll offer 5k into escrow for the 2nd and let him go sign a note for the difference. Maybe he will go for that, I hope. He didn't seem like a bad guy but he did act like he was entitled to walk away from his debt. Guess I grew up different.

Thanks for the info everyone!
So much to learn. .....;)