Posted by Stacy (AZ) on October 26, 2001 at 12:08:35:
Sasha, what you are describing is a short sale. Yes, it’s done every day of the week. To find out more, you may want to search the archives for “short sale”. Pay special attention to the part about the seller having to pay income taxes on the amount of loss (discount) to the lender. The sellers need to know about that before you proceed, since they’ll end up having to pay it.
Mortgage discounts from lenders - Posted by Sasha
Posted by Sasha on October 25, 2001 at 20:10:31:
I just signed a contract today for a rehab property, subject to existing financing.
The house is trashed and the seller is a couple of payments behind. I was thinking of approaching the lender and asking for a discount for paying off the loan.
Has any one ever found that institutions are willing to discount to avoid having to foreclosed on a fixer upper? If so how have you approached them and what type of discount did you get?