All Forum Posts by: Mitch Freed

Hi Audley,

Thank you as well! The negotiator from Litton will definitely be some help...I'm hoping he can get through to RTR.

But I'm thinking there is more to the situation as Scott explained earlier...not as simple as using the auction date as leverage...seems that RTR may have plans beyond the auction.

One thing that may work in my favor is that this loan was a purchase loan...I haven't brought that fact up yet to RTR.

Hopefully tomorrow will yield some more updates.

Also,

These are trust deeds...there is no deficiency judgment in Oregon.

Hi Scott and Mitsu

Thanks for your input, very helpful!

Eric Luna was the first negotiator I was referred to but I ended up with a guy named Craig Gilbert. Craig was the one to reject Litton's offer of 3k.

Looking at the transaction history...it looks like the 2nd ($46k) was used to purchase the house. So correct me if i'm wrong but wouldn't that make this loan non-recourse and they wouldn't be able to pursue after the foreclosure?

I can probably get the real estate agents involved to reduce their commissions ...but as far as the borrower coming up with any money...that might be a tough sell.

The negotiator at Litton is working to resolve the issue with RTR...so i've got some support there.

The negotiator at Litton made a comment that RTR is allowed 10% of the unpaid debt or 3K.

That is definitely one solution, but it won't work here. I am simply the negotiator on this file...I am not closing the deal and then flipping to an end buyer. I'm just negotiating this thing for a friend.

The buyer is FHA and most likely won't have the extra cash to be able to come up with what RTR is demanding.

What is also strange is that part of the 12k is RTR requiring that the seller contribute 4k of their own funds. The seller is in foreclosure and is broke...so it just doesn't make much sense.

And yet, RTR won't budge.

Has anybody had any negotiating experience with Real Time Resolutions? I've got an approved short sale with Litton as the first and RTR as the 2nd.

Litton has sent me an approval letter and they are allowing 3k to RTR.

RTR negotiator has rejected the 3k and is asking for 12k.

I submitted the request to my Litton negotiator who gave me an obvious answer of "no way."

Subsequently, the RTR negotiator closed the file.

Auction date is 30 days away. Buyer is lined up to close etc...only problem is Jr. lienholder.

Anybody dealt with something like this before?

Thanks!

For the deed transfer...has anybody had an issue at the closing table? If you write an offer to the seller..get it approved by the lender..the approval letter states that the seller is "homeowner" but that technically isn't the case if you have transferred the deed prior to closing.

How will you get the foreclosing lender to approve the HUD if it lists the "homeowner" as the seller...but you are already the owner of record.

Anyways...i use the recorded option method and it seems to work perfect. Quite a few investors have gotten themselves into some trouble by getting homeowners to deed their house over...they didn't have any ill will in mind..but some homeowners have been known to act irrational during times of financial strain...and they mention to somebody that they deeded their house away to some investor...could spell trouble.

The option is much less threatening than the deed transfer...the seller doesn't lose ownership...and the option has just as much power if utilized.

I have successfully completed a short sale like this. I negotiated a 2nd mtg down to 3k from 50k and took the first (100k) sub 2...had to bring the first current of course but was still a great deal.

A good strategy especially if you are into holding properties as rentals.

I'm not talking assumption either...just taking title subject to the underlying first mortgage.

And the 2nd doesn't care what happens to the first...they just want some money...otherwise the place goes to auction and they get zero.

Another property I actually settled with the 2nd first..they released the lien per the settlement...then I brought the first current and took title at the same time.

And how do the plan to enforce that?

I have gone back and forth on this issue with short sales that I negotiate here in Portland. Ultimately, a renter in a house that is being foreclosed on is a recipe for disaster.

You can disclose all you want to the tenants...but think about it...you don't want the type of tenant who doesn't care that the house is in foreclosure and could possibly go back to the bank while they are living there.

The option is a great tool. I have actually cut down on FHA deed seasoning by filing the notice of option 45 days before I closed the short sale. I only had to wait another 46 days for my end buyer's lender to fund.

However, it doesn't always work that way...depends on the FHA underwriter...i have also had them tell me they didn't care about my recorded option and wouldn't fund my end buyer's loan until 91 days after i officially took title.

So for that it is hit and miss...but it ultimately protects your right to the house during short sale negotiations.