Chula Vista CA Short Sales - Many agents run into problems with short sales that have more than one mortgage. For example, we had a short sale with a first mortgage, a second mortgage, and a third lien. The third lien was an old credit card judgment. It had to be paid off to sell the house. Here is what happened.
The first mortgage was only willing to pay $3,000 to any second mortgages or liens. The second mortgage wanted $4,500. The credit card judgment wanted $5,000. How were we going to get the extra money for them?
I had to escalate the file with the first mortgage. I told them that they had two options. Option one: Pay the first and second mortgage and net X. Option two: Foreclose and net X minus $15,000. I have a calculator that puts all these numbers together. In addition, I have the proof to back it up.
Here is an example of that proof. There was recent short sale where the first mortgage stubbornly refused to give enough money to the second mortgage. As a result, they lost around $45,000.
I found out about this house because I met the first buyers at an Open House. They were trying to buy a short sale and were offering $272,000. The first mortgage was RBC, owed $337,500. The 2nd was Bank of America, owed 70k. The listing agent submitted the short sale offer to both companies. RBC said they would only pay $1,000 to the second mortgage. The second mortgage wanted more.
The short sale dragged out for months. Finally the buyer paying $272,000 walked. The listing agent put the house back on the market. The housing market had declined. Now the only offers she could get were around $230,000. The house ended up selling for $229,000.
RBC was greedy and wouldn't offer enough money to BOA. As a result, they lost around $45,000. Was that a smart business decision? I don't think so. Now, back to my short sale story.
I sent this and several other similar examples to the people at the first mortgage. They agreed to pay the second mortgage $3,000 and completely pay off the credit card judgment. The buyer agreed to pay the extra money the second mortgage wanted.
So we got the short sale closed. The seller was able to wipe out over $70,000 in upside down debt and move on with her life. Do you want to short sale your property and never pay the bank another penny? I can help you do that.
Send me an e-mail at mikekwcv@gmail.com. I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at 619 743 8884.
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
Thinking about a loan modification? Our Chula Vista Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.
Thanks for reading this, Mike Watson.
Mike is a Real Estate Agent at Keller Williams.
Phone: 619 743 8884. mikekwcv@gmail.com.
View My homes for sale at www.sellingchulavistahomes.com.
Mike Watson has lived and worked in Chula Vista California since 1999.
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