Short Sale Solution Help Needed
I sent Short Sale Package to the bank. After couple of weeks, bank called me to inform me that there were junior liens. I should therefore negotiate with the lien holders. After negotiations, 2nd mortgage was reduced to $10K from $55K and credit card amount was reduced to 10%. I sent this information to the bank. Bank has now informed me that they will not consider my offer till they receive a clear title with their (lien holders) names removed. Also, bank does not want these lien holders to be paid from the proceedings. Please help me out by letting me know how go about doing this.
Thanks,
If you didn't know about the junior liens... you didn't do your homework... Next time you won't make that same mistake.
Even if you were to pay the $$$ out of pocket... there is no guarantee that the offer for short sale would be accepted.
I would have the juniors give you a written payoff statement with a date projected to coincide with your potential closing date.
You'll have to demonstrate (addendum to your short sale proposal) that you have the $$$ to pay them... and will pay them at the time and place of the closing...
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Short Sale Practitioners can't predict, or guarantee results... but can take steps to insure the likelihood for success....[ Edited by TheShortSalePro on Date 06/17/2004 ]
shamu,
Do you have the cash to deal with the junior liens? If so, see if the lender in 1st will take the payoff letters with a deposit of the necessary cash into an escrow.
When the lender in 1st commits you commit to taking out the junior liens. Effectively calling their bluff but waving around some cash to show you are serious.
John
[addsig]
Out of curiousity, any clue how a credit card got a lien?
The bank is totally playing games. I would go with the escrow idea. If required, make the junior lien holders part of the escrow.
They deposit the satisfaction of lien and you deposit the $$$.
How can the bank argue w/ that?
I had a similar situation. The first would only allow 1k to satisfy the second. Unfortunately the second was 80k and we negotiated to 20k.
My title company told the first that their net would not change and that the second had to be paid from closing and so the payoff of the second would be on the HUD. The title company guaranted there would be clear title.
It seems that they listened to my title guy, just as they usually listen to lawyres, more than they listened to me.
Brenda