i'M WORKING ON SHORT SALES IN THE lAS vEGAS AREA AND NEED SOME GUIDE LINES FOR IT. iF THER ARE TWO LOANS ONTHE PROPERTY AND THEY ARE TWO DIFFERENT LENDERS DO WE HAVE TO MAKE OFFER TO COVER BOTH LEINS OR JUST THTE FIRST?
hOW LONG SHOULD IT TAKE TO GET AN ANSWERE BACK ON THE OFFER TO THE LENDER?
i KNOW THESE SOUMD A LITTLE LAME BUT i'M JUST GETTING MY FEET WET ON THESE.
VALERIE
Valerie, A short sale is a very complicated deal and your Seller should be seeking legal advice. If you have never handled one before you need to discuss all of this with your Broker.
Valerie,
Yes, you will need to make arrangements with both lenders (the first and the second mortgage lenders) to accept the terms of the short sale and release their respective liens on the property... Without those releases of their mortgage liens, your seller client can not deliver clear title to the purchaser.
In addition, any other personal liens (i.e. Federal Income Taxes, court judgements, etc) that have been filed against your seller, and attach to the property, will need to be released as well.
Unless the first mortgage holder is paid off in full (all back payments, interest, penalties and legal fees) the most the first mortgage holder is going to offer the second mortgage holder is about $1,000 to release their lien. Your seller will then need to work out an arrangement with the second mortgage holder that is acceptable to both parties.
I hate to say this, but it sounds like you are way in over your head. Short Sales are not something that should be attempted by real estate agents without experience in the process... they are ten times more difficult to complete than a standard sales transaction.
I agree with Bryant and would suggest that you contact a VERY GOOD real estate attorney who is familiar with the short sale process....
Comments(3)