How To Close This Short Sale? Help!

I have this deal under escrow and now this property will be going to auction on July 5th, 2007.



The ARV of this property is $515k.



Estimated Rehab costs would be $40k.



The owner has a payoff statement from the 1st mortgage for $442k with a 2nd balance for $80k.





How can I get a short sale done if:



1. The 1st mortgage will not discount their loan if a junior lien is to get any proceeds on the HUD1

2. Junior lien will not sell their note at a discount to me?





How in the world is a short sale to take place with those conditions?





Comments(3)

  • cjmazur15th June, 2007

    try talking to a different person
    can you play chicken and wait for them to fold
    What position would you be in if you shorted the 1st and not the second?

  • PMP21st June, 2007

    Unfortunately I have been in this same situation with CitiMortgage and was never able to finalize the deal. They also told me that after the property went to sale they would sue the homeowner to recover their loss.

  • toobizee16th June, 2007

    whats your website?

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