Richard "RJ" Kas (SFR, SRES)
"Representing the finest properties from Los Angeles worldwide"
KAS Properties - Coldwell Banker Previews International - Beverly Hills South
166 N. Canon Dr, Beverly Hills, CA 90210
310.859-5334 office - 310.488.9826 mobile - 310-273-0690 fax ATT: RJ
RichardKas@gmail.com - http://www.RJforLA.com - DRE: 01352771
Sellers Buyers Investors Leasing Consulting
Your agent should submit packages to all the lenders you have at the same time. The packages for short sale can usually be downloaded from your lenders website.
The secondary lien holders will typically wait until the first provides them with a letter outlining what the terms of the first acceptance are and how much they are willing to pay them.
Sending paperwork in advance will reduce processing of the second and will likely prevent you from losing the buyer due to no updates or delayed response.
Ron's answer is incorrect. Your agent MUST contact the second lien holder AND deliver a full package to them, because, whether or not you are delinquent, they will need to approve the short sale. Why? Because the First Lien Holder controls how much payoff is offered to the second (and third, etc.) lienholder to get them to release the lien and grant clear title.
In order for the second lien holder to approve the (deeply discounted) offer they will receive from the first lien holder, they must review the short sale package, do their own BPO (Broker Price Opinion of value) and perhaps even an interior appraisal.
The second lien holder will usually receive between $3000 and $6000 from the first TD, regardless of whether you are delinquent or not.
As to when you should start, start IMMEDIATELY, because second (and third) liens can take longer and be harder to release than the first, because you must have an offer from the first to take to the second, and because you don't want the first to be waiting for junior lien approval after you have approval from them.
One last point: Don't think that if your first and second liens are both with one lender (say, Bank of America, for example) that you don't need to process two packages. You do. Each lien is handled by different departments, usually in different parts of the country, and often are different investors.
Start your package NOW!
Best of luck,
The Bremner Group at Coldwell Banker
REALTOR, 00588885, ABR, CDPE, eAgent, CSP, SFR, HRC, CRE
(O) 310-571-1364 DIRECT
(D) (310) 800-2954
Accredited Buyer Representative|Certified Distressed Property Expert |Pre-Foreclosure Specialist Certified
Visit my website for short sale information http://www.Short-Sale-Vs-Foreclosure-Help.com
Sara Mehrpouyan CDPE
Specializing in Short Sale & Foreclosure
Dre License #01712757
Regerdless of how many liens you have and if you are current on them or not, everyone has to agree to a short sale. As a certified Distressed Property Expert and having closed 100's of short sales , I can certainly tell you that the first thing I do is Negotiate with the 2nd , 3rd Lien Holders and work my way up to the main loan.
MOst of the money from this Short Sale is going to go to the 1st and they are usually the easisest in this deal cuz they get maximum money. You should absolutely submit the same short sale package to the 2nd lien and find out what they are willing to accept as a minimum balance. Once you know that you have to go to the 1st loan and see if the 1st lien holder will agree to give them that much. Get yourself a CDPE to do your short sale. We are trained and experienced Realtors in Short Sales. I wish you luck. If you have any questions , you can call me or go on to my website. 818-919-5656.
or the Title Company will call them to get a "pay off" figure.
You do not have to worry about the creditors coming out of the wall:
The Liens MUST be taken care of; they MUST.
You've got enough to worry about.
You may be in for a long wait, so try to relax and don't stess out any more than you already have.
Good luck and may God bless