Posted by Bill Jacobsen on April 14, 2009 at 18:18:06:
Your sale as you described is contingent on you being able to short the 2nd mortgage. The 1st is not involved since they would receive a full payoff. The 2nd stays with the house until it is satisfied. They have a number of options including: invoking the due on sale clause, forclosure, etc. They can agree to a short but create a note for the difference.
Bottom line is that you have to work with the 2nd.
Bill
PLEASE HELP… about Short Sales - Posted by Joe S
Posted by Joe S on April 13, 2009 at 15:35:59:
Hello all…
I live in CA.
If I go the short sale route, my first mortgage would be paid in full if the house sells for market value. However, the 2nd mortgage of 200,000 would be short around $40,000.
I was told by the 2nd mortgage holder that they would have to approve a short sale.
But if I sell the house and there’s not enough left over after the 1st is paid, what choice would they have but to take the remainder… a deficiency suit?
They told me that once a buyer is found, I can submit my financial details that their investor would consider in order to agree to a short sale. But HUD told me that I only need to deal with the first mortgage holder (even though THEIR loan would be paid in full) and that THEY would communicate with the 2nd lien holder. Is this true?
And finally… does anybody know if these services legit or scams?
If legit, is there an advantage of using them versus a regular local Realtor? Who ARE these people, anyway? Simply investors looking to get a jump on new short sale listings?
Thanks so much for everyone’s help!
Joe