I am trying to negotiate for my client with a 2nd lien holder. This is held by the builder and the original amount owed was $8100 and client made 8 payments of $98 (last payment made in 2007). Below is what I will be emailing, can you please help me critique as I have no experience. Thanks

"The house is set for forclosure on 3/1/11, we have requested short sale approval from .... bank, but have not yet received an answer. I have spoke with Mr & Mrs ... and at this point in time they would like to know if you would settle for $1000.00. I know this is a substantial amount less than what is owed, but at this point we are just trying to do what we can to avoid foreclosure. Because if it goes into foreclosure nobody gets paid, Myself included."

The house is set for forclosure on 3/1/11, we have requested short sale approval from .... bank, but have not yet received an answer. I have spoke with the ... and at this point in time they would like to know if you would settle for $1000.00. I know this is a substantial amount less than what is owed, but at this point we are just trying to do what we can to avoid foreclosure. Because if it goes into foreclosure nobody gets paid, Myself included Keep it short and sweet. Builder knows the stakes. If you have a contract mention that.

We do have a contract, do I need to give any details or just let him know that an offer/contract has been made?

Thanks for the input.

I would withohld details until you get a response. Then go to your clients and plan your counter proposal. At that time you can give the builder more details.

Did builder get a judgement against them?

Sounds like a steep mess. Good luck you seem to have your work cut out for you.

Yes, this quiet a mess, but I am a new agent and don't have a lot to focus on so its fine. The thing I am excited about is I've got both sides on this one. Its only going to be about $110k but that fine with me.

I think builder may have helped with down payment or something of that nature.

This site is awesome thanks to agents/brokers like you.
I felt really lost before I found this forum, it has been a tremendous help. THANKS!

Doin' gave you some good advice. Yes, tip your hand less to the contractor and stick to the bare bones of information. Make sure you get an actual "payoff statement" from the contractor and get it to the title company ASAP.
Good Luck!