Has anyone had luck with negotiating a discount for paying off a mortgage at a big bank like Wells Fargo?
As a thought experiment, I just tried and got nowhere, but wondered if I just didn’t say the magic words to enough people in the hierarchy. None of the employees know anything about the time value of money. 🙂
Otherwise, has anyone walked a mortgage to another property on a loan like that?
I have been successful at getting a substantial discount from Wells Fargo (and other big name banks) BUT only when it was a short sale situation with the loan in default.
Usually the bank only services the loan but the note is actually held by a hedge fund on wall street somewhere. So, a discount has to go up the ladder to get approved. If the loan is in default, ask to speak with their loss mitigation department.
If the loan is not in default, I think you’ll have a hard time getting a discount unless you can show that the value of the property has dropped a lot compared to the mortgage balance.
With short sales, they send out their own appraiser to evaluate the condition of the property. And the seller/borrower has to prove a hard ship on why they could not make their payments. To make it even more complicated, the seller cannot get more than $1000 in cash for moving expenses ( the bank does not want to take a hit with the defaulted seller gaining a windfall profit).
I doubt that you can get anyone to agree to walk the mortgage on an institutional loan.
It’s a non-starter. I had actually thought they owned the loan, but I believe they are just the servicer.
It was a “fun” conversation, though.
For what it’s worth, this advice lifted from Jimmy Napier, but I’ve heard of the technique from a variety of sources. Jimmy’s original advice involved a Savings & Loan which seems more negotiable than someone like Wells Fargo or any big institution.