Short The 2nd And Keep The House??
I would like to keep the house sub2. The first is foreclosing. I would bring the loan current. The 2nd is a balance of 70k. I completed a SS package to them and they would take 7k to release the lien but they would file a deficiency judgement. The 2nd knows that they would have to be paid out of closing anyway - stipulation of the 1st - so the 2nd is not expecting a HUD.
Can I bring the loan current, get and record a deed, and short the second? Can the second then attach something back to the house or even another house. The house is question would have a new owner, but the owner that was in foreclosure does have another house.
Confused about what to look out for when you take the house sub2, and short the 2nd.
Thanks
Brenda
Come on short sell people? Hasn't anyone shorted the 2nd and then kept the house?
Brenda
You have a lot of pitfalls in what your trying to do, short sales as you probably know can fall thru for so many reasons.
One of the problems I see with what your trying to do is that for the 2nd to short sale the house has to be in foreclosure but you were planning on bringing the first current which would take it out of foreclosure. If this can be done I would not bring the first current till the second was paid off. If the second is taking a deficiency judgement anyway they might settle on taking the funds outside of any official closing and remove the lien on the house. Then they should still be happy because they can have the owners sign that deficiency judgement. I hope this helps.
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Thx
Jimmy
Grace Financial Solutions LLC [ Edited by cimlas7 on Date 03/12/2004 ]
The best way to do this is to purchase the 2nd for a discount. Make up back payments on the first, make sure they will allow the loan to be reinstated.
All you need from the second is for them to sign an assignment of mortgage/lein. File that against the property and you are good.
The 2nd is 70,000. They will release the lien for 7k but it will take 60k for an assignment.
did you attempt to just buy the second? one possible exit i would have suggested would have been to buy the second at a discount and then keep the house. or buy the second reinstate the first and sell....