A short sale with 2 lenders involved usually takes longer. The 2 lien holders
have to agree on the amount of money each will get of the price you pay. This
has been my experience with my buyers.
For example, if you find 2 homes you like equally and one has 1 loan to
satisfy and the other has 2 - pick the home with 1 loan. However, if you fall
in love with a home and it has 2 lien holders, go for it, if you can stand an
extra wait time.
One of the most important ingredients for a successful "short sale" is how the owner has approached this. It they are taking the advice of an attorney that specializes in these transactions there is a much higher percentage for success than with those that are wandering their way through the process.
Prior to seriously considering making an offer, I would recommend finding out where the owner is in the SS process. Have they filed the paperwork? Are the working with an attorney? Are the two loans held by the same lender? Is the primary lender showing a willingness to work with the owner? Is there a legitimate hardship involved?
In short...more difficult? Possibly......impossible, not in the least!
My record is no longer 100% but it is WAY higher than the 50% claimed by David Cooper (below). Short sales continue to close if handled properly. That means vetting the seller; getting the sellerâ€™s package together properly; pricing the property properly; negotiating the offers professionally and handling negotiations with the lender(s) professionally (or hiring a negotiator to do so).
David Cooper Investing in Las Vegas since 1994
I would look elsewhere , sorry the answer is not more positive.
If you are getting a good deal I would not shy away from it.
Do you know if this bank owned already or if the ones short selling are still in property...
If you need help with finance let me know, just contact me.
Also we underwrite loans for purchase loans where you dont have a property in contract yet, not just a pre-approval.
Michael R Diaz
I don't know where you are getting your information but it is wrong if you are saying there are two lenders on this property. There are no lenders involved here.
Realty One Group, Las Vegas
It's more complicated and will take longer, but short sales with 2 loans do close. I would say your odds go down with more complexity but you can improve your odds by hiring a well trained and more importantly an experienced short sale agent.
There are lots of agents "trying out" doing short sales. Some of these agents will go on to some success and others will pull out their hair and give up on them. You need to select an agent with a solid track record of success closing short sales. A certification is nice, but will not trump experience.
I did a blog post on the multiple parts of a short sale. You might find it helpful. Best of luck.
I have heard of deals where the two lien holders do reach agreement, so you will need to patient with a tranaction like this.