Paying Off 2nd
I am working a short where I am getting financing for the purchase. The 1st gave me 30 days to close but I have only 8 days left on the 2nd (they have already extended and stated they won’t extend any more). The negotiated 2nd is only $1500. Should I pay the 2nd early and if so what paperwork do I need to receive from the 2nd to show at the closing?
Thanks,
Beachboy
Unless you are absolutely certain that you will be approved for financing... I wouldn't lay out a nickel on the second.
Since their approval is predicated upon an anticipated recovery... but you can't close until the next cycle... why not offer them a few more dollars at closing, say $250 more.
The finaning is no problem. I just wanted to know what paper work the bank should give me after they recieve my funds?
Thanks,
Beachboy
The bank will file a release of mortgage document with the local county recorder. You can likely request verification of the payment be faxed for you at closing if you do not have enough time to wait for it to be processed at the recorder's office.
Hi Beachboy,
I have had many banks simply send me the Release of Mortgage and expect me to record it to release the lein. Some of the larger banks will take thier time in getting this to you.
On all shorts that I do now, I send them a prepared Release of Lien with the Payoff funds, and ask them to sign off on this and send it back right away. With this approach, I generally get a fast return of the release, which eliminates the need of fighting them when you are trying to sell the property.
Best of success!
BAMZ
Thank you,
That sounds like a great plan....I'll try it on the next one.
Beachboy