Release of lien with Wilshire Credit - Not short payoff - Loan Modification Forum

mbmullen · 09-04-2009, 06:17 PM

I just received my approval letter from Wilshire Credit. When they filed the foreclosure paperwork it said the the deficiency was waived. However, this approval letter is a Release of Lien only and says something about a promissory note. Two questions:

1. Is it too late to negotiate this? We don't want to slow down the sale in any way, but don't want a $45,000 lien or judgment either.

2. How will we be expected to pay this off? We are completely insolvent and were counting on a 1099 that we would be able to exempt.

Any help would be greatly appreciated!

amiesheikh · 09-05-2009, 08:38 AM

Yes you can still try and negotiate it down. I've found that if you can offer them something as a settlement (start with $500 if you have it) the second will agree to a settlement instead of a prom note.

(Run this all by an attorney but this is what I've been told by several real estate attorney's) If they won't agree to a payoff settlement just sign the prom note, sell the property, make your first payment and then renegotiate the prom note for a settlement amount. Tell them you made your first payment in good faith but you find that your situation has worsened and you can't afford to pay this much anymore. After the property is sold the second has no collaterol on you, it's now an unsecured debt (much like a credit card).

amiesheikh · 09-05-2009, 08:40 AM

Also if you have an agent ask your agent if they can help out with the settlement on the second. I'm an agent and I credit some of my commission in short sales all the time to make them work and help my clients out (on the listing side)

mbmullen · 09-05-2009, 02:10 PM

Wilshire is not the second, they are the only one. I am an agent (not the listing agent) and have handled the negotiations myself after having to fire the 'negotiator' I was working with so I didn't really know what I was doing when I took over. I got the approval within 30 days, though, so I guess that's something.

From what I'm hearing from other sources, we should just go ahead and close and deal with the balance afterward.

Thanks for your help!

09-04-2009, 06:17 PM	#1 (permalink)
mbmullen Senior Member Join Date: Jul 2009 Posts: 31 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Release of lien with Wilshire Credit - Not short payoff I just received my approval letter from Wilshire Credit. When they filed the foreclosure paperwork it said the the deficiency was waived. However, this approval letter is a Release of Lien only and says something about a promissory note. Two questions: 1. Is it too late to negotiate this? We don't want to slow down the sale in any way, but don't want a $45,000 lien or judgment either. 2. How will we be expected to pay this off? We are completely insolvent and were counting on a 1099 that we would be able to exempt. Any help would be greatly appreciated!

09-05-2009, 08:38 AM	#2 (permalink)
amiesheikh Member Join Date: Jul 2009 Location: Northern VA Posts: 22 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Release of lien with Wilshire Credit - Not short payoff Yes you can still try and negotiate it down. I've found that if you can offer them something as a settlement (start with $500 if you have it) the second will agree to a settlement instead of a prom note. (Run this all by an attorney but this is what I've been told by several real estate attorney's) If they won't agree to a payoff settlement just sign the prom note, sell the property, make your first payment and then renegotiate the prom note for a settlement amount. Tell them you made your first payment in good faith but you find that your situation has worsened and you can't afford to pay this much anymore. After the property is sold the second has no collaterol on you, it's now an unsecured debt (much like a credit card).

09-05-2009, 08:40 AM	#3 (permalink)
amiesheikh Member Join Date: Jul 2009 Location: Northern VA Posts: 22 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Release of lien with Wilshire Credit - Not short payoff Also if you have an agent ask your agent if they can help out with the settlement on the second. I'm an agent and I credit some of my commission in short sales all the time to make them work and help my clients out (on the listing side)

09-05-2009, 02:10 PM	#4 (permalink)
mbmullen Senior Member Join Date: Jul 2009 Posts: 31 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Release of lien with Wilshire Credit - Not short payoff Wilshire is not the second, they are the only one. I am an agent (not the listing agent) and have handled the negotiations myself after having to fire the 'negotiator' I was working with so I didn't really know what I was doing when I took over. I got the approval within 30 days, though, so I guess that's something. From what I'm hearing from other sources, we should just go ahead and close and deal with the balance afterward. Thanks for your help!

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode