Short sale w/2 mortgages
Ooooooooooookay, it seems like every day a new obstacle pops up in this fight for some cash.
I've just noticed a post recently about 1st mortgages refusing to short sale if the junior liens receive any proceeds. Is this a generality or an absolute, written-in-stone rule?
If it is absolute, then can anyone clarify the steps needed to be followed so that one can get this mess cleared up?
Andrew
It's a generally accepted practice, but not written in stone. Depends entirely upon how the short is "prequalified", and the TVOM spreadsheet that should be included in your proposal.
What's a TVOM?
Andrew
I've never noticed it, but I'm labeled here as a "Sophmore Investor". Fact is, I'm neither.
TVOM? time value of money
Banks do not make emotional decisions. They predicate their decisions upon credible and material information.
I generally include a TVOM scenario in the Proposals that I prepare for Clients.
TheShortSalePro,
do u have an example of this spread sheet you could share?
what else needs to be submitted with a short sale puposal?
In banks on short if the value is TRULY lower than the balance? or is it possible to get a bank to short when a VALUE is much higher than the balance?
much thanks
cjs111@cox.net
Sorry, it took me years to perfect the Proposal format, and thousands for a CPA on the TVOM spread. In fact, it's protected by copyright.
Much of this is common sense, timing, and luck. The more comprehensive your Proposal, the more credible your argument, the more professional your presentation, the more likely it will be considered favorably.
It's not common for a mortgagee to agree to a short sale if their information suggests that they would be made whole in an executed foreclosure.
In the case when a property's value exceeds the mortgage balance, the mortgagee might be persuaded to sell the mortgage (via an assignment) at a discount... rather than to approve a short sale.