Posted by JoeKaiser on December 20, 2000 at 02:01:37:
I can’t figure out this “asking for the deed” talk. You’re buying a house, not a deed. A deed is just the paperwork that makes it happen. You don’t ask for a deed, you ask for the darn house. That would be like looking at cars and when you find the one you like, asking the fellow if you can buy his title.
Your deal isn’t thin, it’s upsidedown. Pretty tough to make it happen.
The first isn’t going to discount. Why would they? They’re likely to get paid in full. Lenders generally discount to about what they anticipate they can recoup from the property, and maybe a little less to avoid the hassles.
Bought a lot with a mobile on it. They owe $38k on the mobile and I told the lender to come and get it (my favorite opening negotiation position . . . use it all the time). Lender told me they figure it costs them $17k to repo a mobile. Hmmmmm. We settled on a sales price of $5k, which was a little less than the lender would have netted had they actually sent someone out there with a hook. That made sense to them.
Whatever you do, it has to make good financial sense to the lender in order for them to sign off. I suspect your play here is getting the 2nd to walk away. They’re likely to get zip, so $5k is way too much. I’m guessing it can be had for a grand. Otherwise, this just gets written off.
If you’ve done your homework and really want to take a shot here, send the lender assignment paperwork along with a check for $500. Tell them you’re looking to clear title and the check is a “token” payment that they may cash upon returning the signed off paperwork to you. It’s a lot tougher for them to say “no” when they’ve got a check in their hands.