Re: How do I Negotiate short pays and discounted Mortgages - Posted by JoeB(Atlanta)
Posted by JoeB(Atlanta) on January 29, 2000 at 10:53:16:
Hi MCF, DON’T take title first and then ask for a discount…'cause if you don’t get the discount, you now have inherited the whole debt!
The common method for negotiating a ‘short pay’ (aka ‘discount on the mortgage’) is to talk to the lender(s) and explain that you are going to CASH them out, but the house is only worth $xxx due to (repairs, etc…send them photos if possible), so the most you can pay them and still make a fair profit is $xxxx. If you can prove you have cash (or access to it somehow) and that you’re buying as-is, and that you sound credible…you stand a chance.
This works for us about 25% of the time, the lender then requests all this in writing with photos, comps, etc. and takes a month or 2 or 3 to get back to us…
There is also a guy who posts on this site (i think NJDave??) that offers a service where he writes up a professional proposal of the above, and submits more officially to lenders…
Anyway, the short pay works sometimes…you have to decide if it’s worth your time & effort.
Hope this helps,