How long you have to move depends on many things. You can get up to 6 months to stay under the right circumstances.
The Homefinding Center
Keller Williams - Norco
Designation In Short Sale And Foreclosure Resource (SFR)
Certified HAFA Specialist (CHS)
Certified International Property Specialist (CIPSÂ®)
Has your agent gone back to the 1st TD holder and told them what is going on? I have rarely seen a 1st willing to let a deal die over $4,000. HAFA guidelines dictate a payment of 6% or $6,000, whichever is less, to the junior lien (ie the 2nd mortgage). Although not all loans fall under the HAFA guidelines, most lenders are using these guidelines as a rule of thumb on non-HAFA shortsales.
Often, all it takes is a call to the negotiator, or an escallation on the file to get the 1st to pay the additional $4,000. I actually got B of A to pay more than $6,000 to a junior lien in order to preserve their payment on the short sale. A foreclosure is not good for the bank and they know it. Get your agent/negotiator to communicate with the lender right away. Dare to Dream.
Shel-lee Davis, QSCÂ®
Certified Distressed Property Expert â€“ CDPEÂ®
Short Sale & Foreclosure Resource â€“ SFRÂ®
Certified HAFA Specialist â€“ CHSÂ®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
Unfortunately many of the seconds are expecting more than what the 1st is willing to pay. If this is a recourse loan or if you do not want a foreclosure on your record, then you or your Realtor should be talking to the second to determine another avenue of taking care of this repayment. Sometimes home owners, because this is their loan, request from the second a letter that states that if the home owner wires in the difference prior to the close as a payment on their bill (or an amount that they can agree on) then they will release a letter to escrow accepting the amount that the 1st lender is willing to pay an forgive the rest. Make sure you get a letter before you proceed. Make sure the letter is something that you will agree too.
This should have been worked out no later than when you received the letter of approval from the 1st, if not before, so that you would have know what you are facing. Make sure if you do it now there is enough time to close the transaction if you can get an agreement before the sale date in case you cannot get an extention.
Do not expect the money to come from anyone else unless you have the first approving that contribution and it must be included in the closing statement (HUD-1). Usually if the buyer is getting a loan, the buyer cannot contribute to sellersâ€™ bill.
Do not agree to allow anything to be done outside of escrow by anyone else. If you are willing to pay on your bill, then it is my understanding that can be done, if you have any concerns you would want to check with an attorney before trying to remedy this situation.
Information is free but knowledge is priceless
That makes ALL THE DIFFERENCE in the world for what my answer to you will be.
The 1st lien holder would only agree to pay out $1,000 if your loan amount for the 2nd was $10,000. I doubt that is the case. I can give you a quick answer, just email me with the answer to my question above.
Realtor Since 1996
Short Sale Expert