In need of help with a short sale.
So here goes my very first blog. I am the listing agent on a property that we are selling in a short sale. The home was purchased with a first and second, with the second being an ARM. After my first offer backed out due the length of time for a response I finally received an all cash offer, which the first mortgage countered once and the buyer agreed. With all of the sellers’ fees and commissions they were about $12,000.00 short of a payoff. The first mortgage company in their acceptance has agreed to pay $1,000.00 to the second.
So now I am dealing with the second mortgage, which has been sold twice now since the purchase of the home. I go to the second with the offer of $1,000.00, and they come back stating that they are owed $24,000.00, but will take a payoff of $12,000.00. They must be paid at or before the closing as they will not pursue the seller personally. I was able to get $1,500.00 more for the first and $700.00 from the seller, so now we are at $3,200.00 for the second. They have still not budged off the $12,000.00. My seller has no assets and does not have any money, and I cannot get any more from the first mortgage. I have tried to explain that the home is selling for top dollar, as the purchaser is a developer who needs the property as a rental to move a person who is impeding his progress on a development.
So why would they not take the offer and possibly still pursue her personally? If it goes to sheriffs sale and they are able to purchase it they will be paying considerably more than the offer we have now. If the short sale does not work out my seller wants to pursue letting the home go to foreclosure and them filing bankruptcy? Does any one have any suggestions on how to negotiate with a stubborn mortgage company? Is there any legal reason why they would not accept what is offered?
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