White House Properties
Let me know if you have any questions.
Sara Mehrpouyan CDPE
Short Sale Specialist
Direct phone 818-903-2040
dre license #01712757
In conjunction with the above statement: No there is no law, each lender has their own guidelines & each Individual deal is different. Each short seller is different with their other assets, income etc. & the 2nd lien holders also base their decisions on what to demand for "payoff" to the 2nd lien based on those factors. Each bank who holds a 2nd lien decides what to demand to release their lien as "paid in full" & allow the short sale to occur.
I want to give you an answer that starts off with "Typically 2nd lien holders ask for X" but I really can't even do that.
If you would like a more thorough answer to your Own unique situation whether you are in fact on the buyer end of a short sale or if you are the seller, please shoot me an email directly, I don't look back on this same Trulia thread for answers posted after mine.
Emily S. Knell
Realtor Since 1996
Realty ONE Group
100% Short Sale Success Rate in CA
2. Focus on lawful liens recognized by the title company.
3. The general rule is the lien holder is entitled to be paid the full amount of the lawful lien.
4. The lien amount should be itemized so you can do the math for correctness.
5. Judgment liens sometimes travel from creditor to creditor at a discount.
6. You may be able to negotiate a discount under the theory that something is better than nothing.
7. Beware of awakening a sleeping creditor; they may want part of your wages or personal property.
Some lawyers in your area probably are skilled at debtor-creditor negotiations. They may recommend a bankruptcy for you to get rid of certain of your creditors or have another strategy that will maximize your position.