90 Days Behind On Mortgage
I am 90 behind on my mortage on a empty rental property. The home is worth
$350,000.00 and it has a first for $275,000.00. and a second for $75,000.00. I have an interested buyer and a contract is expected in the next couple of days. I have the short sale package ready to submit to the first and second lender. The first will probably be covered but the second of course will not.
I have been told that the second will try to get me to sign a note for the difference. (their loss). I have also been told that I do not have to sign this note. My question is if this is true and any advise on how to deal with the lenders as the seller?
The second question is if the property is going to foreclosure would the second not want to accept something rather than getting nothing?
Maybe better stated why would they turn down a short sale package? :-(
[ Edited by wayne524 on Date 05/21/2004 ][ Edited by wayne524 on Date 05/21/2004 ]
The second might decide that you have other, attachable assets, &/or the ability to repay the debt in the future. A lot depends upon their Philosophy of the Day.
Simply because a property with two mortgages might be headed to a foreclosure sale does not mean that the second would not get anything.