What Should I Do?

What Should I Do?

Herm M.Pro Member
Real Estate Investor · NorCal, CA · Member since 2009 · 273 posts · 43 votes

The lender countered our original offer (250k) with an offer of 285k. There's a buyer lined-up at 340k. Should I try to cut down the 285k down to 270-275k, and increase profits? Or should we not risk getting denied and/or the file closed, and agree to the 285k?

It might sound like a no-brainer to take the 285k...but I guess my question is more along the lines of: How likely is the lender to deny a cash offer of 270k? 275k?

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Rehabber · Tucson, AZ · Member since 2008 · 1k+ posts · 802 votes
16y

In my experience, I would keep countering even if they say "this is our final offer". As a general rule, the negotiator must perform due diligence per the service agreement and will keep the file open. For this to occur, you should always do your counters in writing and provide support. No support, no reason to perform due diligence.

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  • Rehabber · Tucson, AZ · Member since 2008 · 1k+ posts · 802 votes
    16y
    Originally posted by H Mann:
    Thanks, Scott. Does it make a difference that the HELOC was a purchase-money HELOC?


    Huge difference since there is no judgment in play. This will affect the 2nd's option of selling the debt to a collection agency for anything substantial.

    So, you now stand a much better chance of getting a less than ten percent payoff.

  • Herm M.Pro Member
    OP
    Real Estate Investor · NorCal, CA · Member since 2009 · 273 posts · 43 votes
    16y

    ^ Thanks.

  • Herm M.Pro Member
    OP
    Real Estate Investor · NorCal, CA · Member since 2009 · 273 posts · 43 votes
    16y

    The negotiator at the first said that the 2nd can get a maximum of 8% of the balance, which will be about $6100.

    The first is willing to pay the entire amount in case the 2nd asks for it.

    And the loan on the first will be considered "settled."

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