Negotiating with Lenders on upside down properties
Anyone who has tried to negotiate with their lender knows that the lenders are fully staffed with well-qualified, English-speaking decision-makers. On a percentage basis, our clients, and even our firm, prior to the initiation of a foreclosure suit, has had very little success dealing directly with lenders. It seems that the lender simply cannot afford to employ a sufficient number of decision makers, but instead employs several policy-makers who then instruct gnomes on phones – sorry, too Dr. Suessesq?
Our firm’s success, in avoiding deficiency judgments, typically comes from negotiating with the lender’s attorneys inside the scope of aggressively defending a foreclosure suit. After gaining some leverage defending a foreclosure suit, where the lenders own attorney advises the lender to take a certain course of action, the lender is much more likely to listen. In other words, the lender’s attorneys have the ear of decision-makers inside the lender’s offices.
By comparison, the lender’s policy makers make policy based on the lender’s balance sheet that particular quarter. This brings up another point, it is likely not important who hands the lender a short sale or loan mod package, outside the scope of foreclosure litigation, the lender’s balance sheet controls the decision-making.
[ Tags: lender decision-making, loan mod, negotiating with lenders, short sale, upside down property ]
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