Bank of America holds the first mtg and HSBC holds the second. We want to sell and pay off the first, pay something down on the second (~$10k) and

Asked by J73114, Oklahoma City, OK Tue Apr 20, 2010

sign a two year note to pay the balance of the second. How likely is HSBC to agree to this and who should we contact at HSBC to discuss this with?

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Jennifer Bla…, Agent, Owasso, OK
Wed May 12, 2010
If you don't mind, let us know how it all worked out for you. I'm very interested in hearing if the bank was willing to work with you.

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Mckinney, , Oklahoma City, OK
Tue Apr 20, 2010
You will need to ask the second lein holder to remove the lein on your house before closing to get this done. There can be no clear title given to your buyer unless that is done.
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Tracey Martin, , Salinas, CA
Tue Apr 20, 2010
Call the HSBC customer service department and tell them what you want to do. They will want to know why you need to sell the house. If you do not have a hardship, and you are not behind on payments to anyone, it will probably be difficult to get them to go for it. If you are behind on payments to either, or both of them, they will be more motivated to work with you. Unfortunately, banks are overwhelmed with short sale request and are pretty much just "putting out fires" at this point in the game. If a borrower is not behind on payments, then the file is a very low priority for them. The down side is that missing a payment, in an effort to get the bank to work with you,creates a negative ding on your credit. Every situation is different. The best place to start looking for solutions is the lender. There is a lot of political pressure on lenders to work with homeowners.Their customer service number should be on your monthly statement. Good luck to you.
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Debo Cornett, Agent, Millers Creek, NC
Tue Apr 20, 2010
When you put your house on the market, you are expected to be able to pass title "free and clear" at closing. If you get far enough into the process of an accepted offer and it's discovered you cannot transfer it due to the inability to closeout the debt from proceeds from the sale, you could be faced with legal repercussions far beyond the issues of that one loan. Many lenders are cutting out 2nd mortgages or equity lines, for this very reason - they're precarious for the lender. So be prepared for them not to be willing to carry an unsecured loan with them. Try to see it from their eyes. Most likely, your house is the biggest appreciative investment you have. If you can't uphold the obligation on that major investment, they will likely lack the confidence that you would be able to do so on something of lesser value. The only thing of value to them is the real estate. So to transfer that real estate, you must be able to pay off the remaining balance of ALL loans at or before closing, or they won't likely release you from the obligation, and it is usually not transferrable to the buyer, making the property virtually unsellable. The only person who can really answer your questions is your lender. You should be talking with them right now, preferably face-to-face and if you don't get an answer, don't stop. Call or visit again soon and talk either with the same person or ask to speak with their supervisor or, as suggested in a previous post, ask to speak with a loss mitigator. However, if you haven't already defaulted on your loan (which can happen when you're behind on one payment) a loss mitigator may not talk with you because they are usually assigned a large group of clients that are already in default, and are so overwhelmed with the numbers, they may not be able to talk with you. But it is up to you to make every effort to fulfill your commitment, or personally negotiate a plan (IN WRITING) with the bank that will allow you to fulfill your commitment to them as well as your other obligations. This needs to be your first step. I also strongly encourage you to get legal and financial advice as to the short and longterm effects this can have on you and your family. Call your local bar association, tax accountant, AARP, United Way, church, etc. to see if they can suggest free advisors, if you're unable to spend additional money to protect yourself through this hard time. Be prepared. Always have a workable Plan B, Plan C, etc. Run those plans through your advisors. Make sure everyone is on the same page. Protect yourself and your family and the biggest monetary investment in your life, your home. For a period of time, this will need to be a job for you that you work on every day. Make lists of things you've done to make this work, who you've talked with, when, where, results of the conversations, etc. Look at these lists every day and update them daily. Something to keep in mind is the fact that you're not in this situation alone. The lender is in the equation as are other similar homeowners throughout the country. There are ways to get through this without too many wounds and there are people out there who can help you. When it's all said and done, you'll probably be a wonderful resource for others facing the same issues. Pass it forward and I wish you the best of luck
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Dutch Revenb…, Agent, Edmond, OK
Tue Apr 20, 2010
I negotiate short sales like this all the time. The are difficult but not impossible. There are hundreds of factors that can affect the outcome, and what the lenders would be willing and not willing to do.

Without a personal review of your situation, including the notes and your financial situation, there is no real good advice anyone can give you via this or any other internet group.

I would be happy to meet with you and discuss your options. No obligation of course. I have processed over 20 short sales in the past 2 years, any with 2nd and even 3rd notes and/or liens & judgments. Please call me for a free consultation.

Dutch Revenboer
Foreclosure Specialist
Metro Brokers of Oklahoma
Web Reference:
0 votes
Russell Bens…, Agent, Oklahoma City, OK
Tue Apr 20, 2010
Bank of America will want all of their money so negotiate with HSBC but they are very difficult to deal with and I've heard from people they have a rather hard time with them. Contact their short sale dept. at HSBC and work it from that angle and see how willing they are to help you. If you're not behind on your payments, they may not help you at all. You'd think they would but they seem to be unwilling to assist you unless you are behind.

Best of luck.

Russell Benson, Realtor®
Prudential Alliance Realty
2005 OKCMAR Realtor Of The Year
Web Reference:
0 votes
Suzanne Walk…, Agent, Oklahoma City, OK
Tue Apr 20, 2010
It's possible but strictly up to HSBC. I've seen banks on a rare occassion agree; although, not often and only after a very long drawn out process. But, it can't hurt to ask. You need to call HSBC and ask to speak to a loss mitagator who will negotiate the second into an unsecured note. You'll have to have this negoitated prior prior to being able to sell the home; otherwise HSBC will not release the lien which allows you to transfer the title free and clear. I am obligated to tell you need to ensure you talk to an attorney prior to negotiating terms. You don't want to find out you got yourself into a worse financially liable situation. This is a complicated process and it is a legal one. A good attorney, real estate agent and title company will be resources you'll need to ensure it is executed correctly, including the note and release of lien.

Be prepared, HSBC, might make you go ahead and go through the short-sale process with the first lien holder even though you don't want to short sale the first. Bankers don't walk away and leave money on the table and to cover themselves they have standard operating procedures in regards to these types of scenerios.

Best of luck,
Susan Walker
Broker Associate
Paradigm AdvantEdge
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Gail Smith,…, , Oklahoma City, OK
Tue Apr 20, 2010
I don't think they are very likely to agree to this. Their collateral is the home. If you sell it, they no longer have collateral.

Have you had a recent market analysis? Values change every day. You'll get more for you home right now, in this market, than you will for years to come. Supply and demand. If you must sell, get it on the market. Hope that helps.
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