To the specific people who have dealt with 80/20's from two different lenders (i.e. Countrywide with the 80 and GMAC with the 20), what method of attack have you found most effective and why? Do you contact both lenders at the same time? Deal with the jr creditor first (here, the 20)? Inform one lender of the other? Please share your experiences.

Eran Forster:

To the specific people who have dealt with 80/20's from two different lenders (i.e. Countrywide with the 80 and GMAC with the 20), what method of attack have you found most effective and why? Do you contact both lenders at the same time? Deal with the jr creditor first (here, the 20)? Inform one lender of the other? Please share your experiences.

 

What is it you hope to accomplish?

Is this a purchase or a refinance.

I'm unaware of any lenders allowing or offering 80/20's anymore

This is a purchase money loan. Not a refi. I'm trying to accomplish a lowered monthly payment on both loans for my client. Most my clients right now (over 80%) are 80/20's. I believe these loans may be more common in Las Vegas, where I practice. Many clients took out 80/20's to prevent a 100% with PMI.

Anyway, this was more of a general question and was not relating to any client in specific. However, in one particular case that I had, I attacked the 80 first because the client is most likely going to file for bankruptcy in the near future. This way, if the client can afford the new monthly payment and if the principal still exceeds the current appraised value, then my client can deal with the second mortgage (the 20) in bankruptcy court.

But that client's case is unusual considering the client is going to go into bankruptcy regardless of what I do. When the client is not filing for bankruptcy, I still try to negotiate the first loan (the 80) first, since I usually have more wiggle room with that lender. However, I'm still learning.

I was only wondering what experiences other people had in these situations. Since I'm seeing them alot, it would help me out in my own tactics.