Short Sale - Mechanic's Lien in first position

Discussion List

SFIX

Guest

Oct 26, 2009 11:28:26 AM

This post has not been rated.

Hi all,

My questions is: how to handle a mechanic's lien in first position and get BofA loss mitigator to pay lien so we can move forward? Contractor and attorney are not going to go away easily with out payment or some payment.

I am negotiating withn BofA on the first and National City on the 2nd.

We have a mechanics lien for $42K that BofA will not pay. The lien has been filed by the contractor's attorney and attorney says the mechanic's lien is or will be in first position. Trial is next May but our foreclosure date is November 15th. National City is also wanting $50k from BofA but BofA only approving $3K to National City.

Thank you.

Jonathan Katz

Group Member

Oct 27, 2009 8:05:01 AM

This post has not been rated.

SFIX,

The mechanics lien is what intrigues me about this post. You are saying that it is in first position? How did it get there if the mortgages already existed? Maybe, it has to do with the state you are in. B of A has no right to decide what someone else in a position in front of them (in the hierarchy of the recordings on the property). This would be similar to the situation if the second mortgage tried to dictate what could go to the first. They can only choose what they are each willing to accept in order to walk away.

As for what is going on for the other mortgages, wouldn't Bank of America actually be considered the second mortgage while National City is third on the property (of course this is all based on the mechanics lien being in first position. Either way this is a typical short sale and you will need to negotiate around what both lender's want to get the deal done.

Good luck and if you'd like you can always check out our blog Mortgage Lender Report where we report on the lender guideline changes as they come up. We even have a free newsletter that brings the information straight to your e-mail.

Regards,

Jonathan Katz | Account Manager | Absolute Consultant Group

We're Your Voice in the Industry ™

26500 W. Agoura Rd. Suite 102-252 | Calabasas, California 91302

(Tel) 888-945-5553 x.1 | ( (Fax) 877-544-0104

(E-mail) jkatz@acgnow.com

www.ACGNow.com

| Available in 50 states |

Lending | Loss Mitigation | Real Estate | Appraisal Services | Debt Consolidation

Discussion List

Reply to Discussion

Please log in to post a reply to this discussion.