How To Get "permission" To Work With Bank
Ok guys,
Bought the house in '96 for 70k. Owes 115k on the 1st, and 45k on the second. House is worth..ehh.ballpark 190k. Definatly want to do a short sale. Guy just says the hell with it and wants to file chapter 7. What do I have to show the bank that i have his permission, and when I call the bank, whom do I ask for, and what DO i say?
p.s. Auction is March 16th
And my other question is this...
..Lets say the bank agrees. Will I be able to reinstate the loan, and then do a quit claim with the owner, or will I have to pay off the loan in full?
To short sale a deal you need to have a authorization to release financial information form signed by the owner. Then you call the lender get an exact payoff of the loan from both leinholders. Once you have that call back and ask to speak to the loss mitigation department of each lender. Once you get the loss mitigation department on the phone tell them you are trying to help Mr. or Mrs....
by purchaseing their home. Would you please send me the neccesary information you need for a short sale. Typically the second lienholder just wants an offer. In your situation I would probably just call the second lienholder and offer them 4-5k as payment in full. I don't think the first will do a short because of the difference between what the house is worth and what is owed. If they wait and go to auction they would probably get their money. Just my .02 cents.
Nathan
in this situation, the owner is planning on filing chapter 7 prior to the auction. Will this have any effect on the 1st lien holder?
Ok, so you think if I offer a 2nd, 4 or 5 k, on 45k they may do it? Its ameriquest mortgage, I dunno if anyone has had any history with them. Even If I could get it for the 115 plus the 5 on the second, I could easily resell it for 150 and make 30k (more than i was hoping for)
you will need either a written letter or a loan authorization form for the bank to talk with you.
I would negotiate with the 2nd lienholder first because I think you have the best chance with them in a short amount of time. Usually 10-15% of the second lien is not uncommon. I think the first would probably not accept a short because of equity but it doesn't hurt to ask. Make sure you mention that if you can not short the loan the owner will probably file bankruptcy sometimes this will help.
Nathan
Good Luck