Posted by Scott Vorous on October 25, 2003 at 09:48:40:
Fred, getting the deed is the first critical step in discounting a first, second or subsequent mortgage. Once obtained, send in your “release letter” to the loss mitigation department and request a shortsale package. Often, when working with seconds, etc, you only need to make a verbal offer and back it up with the statement (and don’t be arrogant) “the most we can offer you is $ (10%) on the second, do you want it? I’ve got the deed, I own the house, the first is in foreclosure.” That should do it. Remember, always use tact with these people; it’s just a job to them and they do get a bonus for saving the account, even if it’s only a fraction of the note’s worth. They get unruly sometimes because so many “unprepared” investors waist their time. Some lenders are all over these and others won’t play ball. Just sound professional and you’ll do fine.
Describe the specific case, by acct # if you have it, otherwise by borrowers name and address.
Ask them if they have an interest in selling the Note and Mtg…? If they say Yes, then you make an offer… discounted of course. Usually it is best to put these offers in writing, sent via Fax machine.
If they say NO, then ask if they will consider a Short Sale…? If they say Yes here, then you need the authorization of the owner, as well as a signed Purch & Sale Agreement.
Usually banks will do one or the other; a few will do both… but not many. Determine the best approach and go after it…