Trying To Figure Out How To Short Sale My Own Home
My second mortgage holder is a friend and is trying to convince me to short sale the 1st mortgager so as to make the total between the 2 of them 80% of the refinancing amount. There have been no payments to either of them since December of 2002. I filed bankruptcy in April 2002 and my (former) wife filed on October 15 of this year. This could stay the foreclosure/sheriff sale for possibly another 8 months to a year. The home needs a lot of repairs because of renters causing a drug raid and extensive damage, and there is a definite hardship in the equation due to the fact that the former wife lost her leg in a motorcycle accident last year. 1st mortgage is at 90k, 2nd at 19k. The home was appraised at 170k in September 2002, but now appraises at 123k. Any suggestions?
Just a curious question...did the renters or the police cause the destruction to your property? If the police do, don't they have to fix it or something? I am probably ignorant on this subject.
The renters are in prison, and I found out that the police don't have any responsibility whatsoever in these cases. I have repaired a lot of the damage, but since I'm not sure if I'll be keeping the home, I don't want to put too much into it. The former spouse has done a quitclaim on the home in the Judgment and Decree btw.
I've read a few posts by people asking how to short sale their own homes, and some answers which state that a homeowner cannot short sale their own home... which confuses me because it's untrue. The fact is that all short sales are pursued by the Homeowner, or the Homeowner's agent, and all short sale consideration and relief is granted for the benefit of the Homeowner.
In your case, there is little incentive for the first mortgagee to sell short. You have too much equity. Eventually, they will force the sale of the home... and, as a result, be made whole.
Even if the process takes another 8 months... there will still be a sufficient cushion of equity to protect the mortgagee.
Sometimes, following the storming of a residence by the DEA &/or it's agents in search of drug operations, the DEA or local authorities 'seize' the premises under the power of civil forfeiture by placing a lien against the premises.
Check it out.
I disagree actually. Any sensible lender will opt for forbearance instead of a short sale most likely.
If they know you are willing to pay them off for a lesser amount the logical arguement would be: why can't you make payments then.
Anyhow, I don't have experience with it. Another solution is to get a third party investor into the mix and have him sign paperwork for you. Pay him a nominal fee.
I just got a short sale, actually a discounted payoff approved with Litton Loan Services. They are actually just the service company for the investor. The property was in BK for 2 years and the trustee abandoned the property which came back to me. I borrowed $28,500 originally and now owe $44,000 to them in back payments, atty fees, taxes etc. They agreed to accept $30,000 from me to release the lien. They figured the current value and condition and actually refused the first offer of $25,000 but sais they would settle for $30,000. I was willing to pay the $44,000 but thought I would try to deal a bit. I saved $14,000 more than some folks make a year.
Thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
512-301-9171 home
512-587-6177 mobile