if the 1st has made it a condition of their s/s that the 2nd not get anything and then at the closing they see that the 2nd got $, will they really be okay with that?
No, they probably won't be OK with that. If their's is rigid criteria (especially so if the first is an FHA insured mortgage loan) they'll expect you to be bound by the terms and conditions of the short sale approval.
Why not try to purchase the 2nd mortgage via an assignment at the negotiated discount? Then, your HUD 1 will accurately and truthfully show that the second mortgagee nets zero. from proceeds of sale...
There are two choices.. buy the note (we'll be talking about this soon) and then you ... the new bank...can satisfy the second with a "zero balance" or you can pay the second off right before the closing, get a satifaction and then close your first and the second will not be on the closing statement.
No, they probably won't be OK with that. If their's is rigid criteria (especially so if the first is an FHA insured mortgage loan) they'll expect you to be bound by the terms and conditions of the short sale approval.
Why not try to purchase the 2nd mortgage via an assignment at the negotiated discount? Then, your HUD 1 will accurately and truthfully show that the second mortgagee nets zero. from proceeds of sale...
Hi Sewa,
There are two choices.. buy the note (we'll be talking about this soon) and then you ... the new bank...can satisfy the second with a "zero balance" or you can pay the second off right before the closing, get a satifaction and then close your first and the second will not be on the closing statement.
Talk to you Monday.
Dwan