Foreclosure in New Albany>Question Details

Dan Hamilton, Real Estate Pro in Worthington, OH

I have a client who owns two homes and needs to short sale one of them

Asked by Dan Hamilton, Worthington, OH Thu Feb 17, 2011

Ok, this may be the most difficult short sale question... I have a client who owns 2 homes. One is on the mkt and she owes about $215000 between her mtg and home equity line. The house is worth a little more, but after closing costs and fees, she'll be bringing money to closing ($10k). She has a 2nd house that she bought jointly with her dad and she is upside down on that by $20k. If she short sells the 2nd, what happens to the first? And her dad?

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If her dad cosigned the loan on the short sale property it will affect him the same way that it will affect her. Nothing will happen to the house that isn't sold short since that is a completely seperate house with seperate mortgages.

Good luck on the sales.

Cameron Piper
Coldwell Banker Burnet
Web Reference:
0 votes Thank Flag Link Thu Feb 17, 2011
Hi Dan,

Nothing happens to the first. That is a separate property with a separate mortgage. If her dad is not on the mortgage of the house being sold short then his credit will not be affected. Only the borrower's credit on a short sale is affected. Is she going to short sale it, or bring $10K to the closing? If she brings the cash to the closing, it's not short sale in terms of consequences to her credit or having to deal with the bank.

We are a professional short sale service and would be happy to answer all your questions. Feel free to call us directly. We look forward to hearing from you.

Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states
0 votes Thank Flag Link Thu Feb 17, 2011
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