Short Sale With 2nd Charged Off
Received an offer and submitted it to the lender holding the first mortgage.
1st is owed $195K, offer $170K cash, close in 45 days.
2nd is charged off, lien remains, owed $150K.
How to get lien released after 1st approves short sale? Have attorney handling the sale do a suit to quiet title?
Suggestions?
Property is a SFH in Florida.
Two separate lenders.
Seller could be a Ch 7 BK candidate.
Charged off or not, you must still get a short sale approval from the 2nd before you can proceed.
What was the indicated payoff to the 2nd on your PHUD1 submitted to the 1st for ss consideration?
Can you work around seller?
Why dont you ask the First mortgage what they are going to "ALLOW" the second. Many times the first mortgage will only allow the second to get so much. Initially I offer the second mortgage 10% and they only time that gets changed if is the first mortgage has a problem with it. I have actually had Mitigators Call the second and talk to them about it and get the whole deal firgured out.
Goodluck,
Brian Ducharme
"2nd is charged off," Your terminology is misleading. In addition, this 2nd mortgage is not a lien. These are totally different legal terms that may need to some confusion.
The 2nd didnt write 150koff, they just cant forclose on the property and they cant get paid until the first forcloses. Who knows how much they will accept for the 150k, usually that was pure cash that went to the homeowner, so they will want to collect something above 90%...but who knows.
Good luck