Any Chance Of Comebacks On A Short?
We have a client who is presently at 140%LTV, (don't ask how that got funded), If they accepted a short on the 2nd down to a more financeable ltv, would there be a chance they would or could try to collect from the original borrower?
TIA
I don't follow your question.
"We have a client who is presently at 140%LTV, (don't ask how that got funded), If they accepted a short on the 2nd down to a more financeable ltv, would there be a chance they would or could try to collect from the original borrower?"
Who is "they" and isn't your Client the original Borrower?
If there is fraud, and/or if an after the fact audit reveals irregularities, all bets are off.
The short can be rescinded.
Some clarification: The lender holds two notes, 1 for 85k and another for 35k the property is only worth ~90k. I am going to do some creative financing (i'm a mtg broker) to get the owner out of this mess and just need to know: if the lender accepts a short, will they try to collect from the current owner after the sale.
That depends upon your negotiating skills, and the terms of the mortgagee's short payoff approval. If they accept your Proposal, they'll articulate the terms and conditions under which they will accept less than they are contractually due.
If, however, they discover fraud, or any material mispresentations... they'll probably seek to revisit the transaction.