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Your Strongest Bargaining Chip When Negotiating With Second Mortgages

Monday, October 17, 2011   /   by Lynn Horner Baker

Your Strongest Bargaining Chip When Negotiating With Second Mortgages


North Metro Atlanta – In our blog post a few days ago, we talked about a first and second mortgage that both wanted more money out of the deal. The problem was they were asking for it at the other’s expense.

In a sense, we had two monkeys with their hand in the same cookie jar. Neither could get their hand out without the other’s cooperation. So, you have an impasse until someone gives in.

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

Here is what happens if both parties stubbornly refuse to compromise. The first mortgage forecloses on the house and sells it as a bank owned property. They get the full value of whatever the house sells for.

The second mortgage gets zero! Yep, that’s right. Because they are a second mortgage, their right to the property is removed through foreclosure.

Now, I’m sure you’re asking, “Then why would the first mortgage even give them a penny? They shouldn’t even negotiate with them!”

Here is why it does pay them to negotiate with the second lien holder. It pays to do so. It takes 6-12 months to foreclose on a property. 6-12 months of lost interest earnings is a lot more than paying $3,000 to $9,000 to the second mortgage.

So, that is your ultimate bargaining chip to use against the second mortgage. We even tell them that if they don’t accept the offer and the home is foreclosed upon, then we will report them to their boss. The shareholders do not want to hear that an employee strong armed the first lienholder and then had to accept nothing in return.

Thinking about a short sale?

I can help you short sale your property and get back on your feet. Send me an e-mail at Lynn@HornerBakerPartners.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 770 579-4060.

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our North Metro Atlanta loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Lynn Horner Baker.

Lynn is a Real Estate Agent and owner of Horner Baker Partners. North Metro Atlanta Short Sales Realtor:

Phone: 770 579-4060. Lynn@HornerBakerPartners.com.

100% Released From Your Mortgage or We Will Pay You $1000.00!

View my Short Sale Solutions at www.AtlantaLoanModSecrets.com.
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