[imacamper]

Update:

I spoke with two attorneys last week. Both suggested attempting to negotiate a lower amount but ultimately settling. Basically the advice was why risk $150K plus penalties and court costs to possibly save $24K, especially when I have enough assets that the lender could ultimately collect on a judgement if it pursued action. I took this information back to my Realtor that is negotiating on my behalf.

Another piece of this story is that 3 weeks ago I injured my back which has put me on disability until at least the end of June. When I told my Realtor of this and that my income will be reduced to 56% of normal. I faxed her proof of my disability (doctor's note) and she resumed negotiations with the lender.

She told me that lenders use automated computer programs that apply modeling to determine what offers to accept and reject. One piece of info that may be useful to others in this forum is that lenders in second position attempt to recover 21% - 25% of the debt in total. In other words, if the sale of the property doesn't net this amount, they will seek a promissary note for the difference. However this amount is augmented by the assets of the borrower and the lender's expected ability to collect on any judgement. Thus this is what the computer program analyzes.

So in my case, I'm waiting for a new offer from the lender. I will post again when I have updated news.

Cheers,

Ima