Suggestions on Short Sales

They say the second usually negotiates because if it goes to foreclosure they get nothing.  If the house is preforeclosure  remind the second of this.   You can try getting the first to deal with the second but I don't know how that would go.

Hi Christina,

I have encountered this problem numerous times. The easiest answer is this.

Find out if the first has filed a notice of default before the second. If so, your next step is to do a sellers net sheet, specifically for the second lien holder, showing them exactly what they will get if the first forecloses. Be sure to include all of the arrear payments, interest, attorney fees (about $15k to $20k) and the usual things (commissions, title, escrow, etc.) It will probably show them that they will receive about $-50,000 or more, which in reality means $0 to them.

When talking with the representative at the bank, be nice yet very firm when explaining your case. Go over the net sheet with them on the phone and simply tell them that they can either foreclose and since they are in the SECOND POSITION, they can either receive nothing (according to the figures on the net sheet), or authorize the short sale and get x number of dollars from the first. It's their call.

Usually they will authorize the short sale within a few days or weeks.

Good luck and let me know if you have any more questions, as I would be happy to answer them for you.

 

Hi Christina,

I have done barely any short sales but you know who would have plenty of information or can answer you questions are the SHORT SALE SPECIALIST GROUP.  Try reaching out to them for help.  See their link below: 

http://activerain.com/groups/shortselling

Goodluck!