Why are Lenders Playing HARD BALL!

By
Real Estate Agent with Keller Williams

In the past few weeks it has become quite clear that Lenders are playing under a different set of rules, at least the Junior Liens (2nd Lien Holder). In the past they would take $3,000 from the first lien and hop away happily that they got something.

Oh, how that has changed !


It is very common now for the Junior Lien to demand a much higher payoff, even it they risk a foreclosure. Why? How does it make sense to do this and risk getting nothing?


The short answer is that they are not negatively affecting their bottom lines, rather it is being enhanced. It is quite a simple process. We, as agents, are working for our clients. The Lenders are working in large numbers.

Follow me: In the past the Junior Lien could approve 20 Short Sales receiving $3,000 on each for a total of $60,000...today they will demand $30,000 from each in cash or $75,000 in a Promissory Note. Well, if 3 out of 20 agree to the cash, the Junior Lien just took in $90,000. They will have a higher percentage agree to the Note which they can then sell to a Collection Co. and net even more.

So you see, to us it is a breathing person that needs relief,
to the Lender it is an entry in an Excel spreadsheet.
Posted by

Sidney Jimenez, CDPE

www.RoadtoForeclosureRelief.com

www.SidneyJimenez.com

Contact Me: 954-665-9449

Or Send Me an Email to Go Over Your Foreclosure Relief Options: Info@SidneyJimenez.com

Sidney Jimenez is a Certified Distressed Property Expert and can help you with all your options to avoid a Foreclosure in Pembroke Pines, Miramar, Coral Springs, Margate, Davie, Weston, Southwest Ranches and the neighboring cities in South Florida. You can count on Sidney’s expertise to handle your Short Sale, he’s “Delivering Winning Results”

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Rainmaker
366,383
Bob Jakowinicz
National Realty Centers Livonia--Bob Jakowinicz - Livonia, MI
734-578-6561 - Michigan Real Estate Agent

Sidney, the seconds here have all of a sudden been much tougher as well.  Nice post

Sep 16, 2009 02:31 PM #1
Rainmaker
305,528
AJ Heidmann
McEnearney Associates, Inc. - Alexandria, VA
YOUR Alexandria & Arlington, VA Real Estate Expert

Sidney,

Your last statement really crystallizes the whole messy problem down into a phrase everyone can get!  The seconds are definitely more inclined to dig in their heels now, apparently emboldened by improving state of real estate in our area.

Sep 16, 2009 03:14 PM #2
Rainer
8,410
Deeba Khader
Harry Norman, Realtors - Marietta, GA

WOW!! Great insight on the lenders!! I have been hearing of this in Atlanta, but no one has ever put it that way.

Sep 16, 2009 10:27 PM #3
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Rainer
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Sidney Jimenez

CDPE, Short Sale Expert, 954-665-9449,
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