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.
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 thru 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 them. 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.
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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 (312) 953-6725
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Thanks for reading this, Phil Buoscio.
Phil is a Real Estate Agent at Better Living Realty – Buoscio Brokerage, Inc.. Chicago Short Sales Realtor:
Phone: (312) 953-6725. firstname.lastname@example.org.
View My homes for sale at www.BetterLivingRealty.com.
Phil Buoscio specializes in loan modifications and short sales in Chicago Illinois. Chicago Loan Modification Help. Chicago Short Sales. Chicago Short Sale Realtor. Chicago IL Short Sales. Chicago Realtor.
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Phil Buoscio, Better Living Realty – Buoscio Brokerage, Inc., and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why?
Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision.
This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.
You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
The views expressed here are Phil’s personal views and do not reflect the views of Better Living Realty – Buoscio Brokerage, Inc..
This information on Chicago Short Sales: You’re Strongest Bargaining Chip When Negotiating With Second Mortgages is provided as a courtesy to our viewers to help them make informed decisions.