I get this question many times from the homeowners that they have second mortgage and whether they can do short sale. The answer is yes! We can still do short sale. The only difference is we need to negotiate with the second lien holder also along with first lender to get the short sale approval.
We have to send the short sale package to both lien holders. Sometime, the second is same lender or 2 loans with two different lenders, so whether it’s same lender or not, we have to send the package to both mortgage holders. Now, here’s the problem, if the second mortgage holder doesn’t approve the short sale due to some reason then unfortunately we cannot complete the short sale even if the first approves the short sale, so it is really important that we negotiate professionally with the second mortgage holder also for their approval.
Sometime, it’s really hard to negotiate with the second mortgage for their approval, they demand a big amount at close of escrow or owner to sign a promissory note in order to release the lien and approve the short sale, even though they know that if it forecloses, most of the time the second holder will not get anything. We need to negotiate hard, have patience, keep the first lender also informed about the negotiation and create a win-win situation here for everybody so that the owner can avoid foreclosure from their credit and the lender gets something to approve the short sale. So, it’s really important for you that you work with an experienced short sale agent to negotiate with the lenders.
So, even if you have second mortgage, you can still do short sale. Always work with an experienced realtor in short sale and before going for short sale, consult with your CPA or attorney for any tax ramification questions and educate yourself about short sale.
If you have any questions, feel free to send me an email or call me at 510-366-9405, I would be happy to assist you.
Similar Posts:
- Short Sales Are Impossible And Never Get Approved
- The Most Important Thing in Short Sale Transaction
- Who Pays My HOA In Short Sale?
- Approved One More Wells Fargo Short Sale In 32 Days
- Wachovia Short Sale Approvals
