Home Buying in Orlando>Question Details

Millermeliss…, Home Buyer in Highland Beach, FL

under contract for a bank approved short sale. We just found out 1 and 1/2 wks ago that there is a lien due to 2nd mort. How worried should I be?

Asked by Millermelissa03, Highland Beach, FL Sun Aug 19, 2012

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8
Very worried. This is one of the main reasons that short sales fail.

Why are you asking us? Don't you trust your agent in the deal?
1 vote Thank Flag Link Sun Aug 19, 2012
What is the lien for? Are you saying that there is a 2nd mortgage also? If so, is the second with the same bank? If not, you will need to submit for a short sale with them as well.
0 votes Thank Flag Link Mon Aug 27, 2012
just a bump in the road for a good Short sale agent. It will take a little more time to resolve but you should get there in the end.
0 votes Thank Flag Link Mon Aug 20, 2012
talk to a real estate attorney!!!
0 votes Thank Flag Link Sun Aug 19, 2012
First thing is a short sale is never approved until you get it in writing that has o contingincies from the sellers bank. Preapproved short sales are never 100% approved until the end. They may agree to a price but you still have to go though teh motions correctly. Having a second mortgage lien is a HUGE problem, they wont go away for $0 , teh seller may not have anything to pay, the first wont want to pay them anything so that looks to you or the agents to contribute.
0 votes Thank Flag Link Sun Aug 19, 2012
Very worried because most times banks do not pay for the 2nd lien. If you want the house, there is a high probability that you would end up paying for 2nd lien. This is a mistake that some Realtors make when putting a short sale under contract.

My group and I always check court records before we go into contract for a short sale. Even better, we never try to go into contract on a short sale and find is best to go for a REO or a regular sale.

Hope this helps!

Javier Rodríguez
HouseStar Realty
Real Estate Broker, REALTOR ®
Lic: BK703443
Short Sale Foreclosure Resource – SFR
Five Star Institute REO Certified

: 407.429.5243 | Cell: 407.301.3401 | eFax: 407.830.5633
: jrodriguez@housestarrealty.com
: Office: 1033 Semoran Blvd Suite 245 | Casselberry, FL | 32707 USA
"There are no perfect men, only perfect intentions"

Websites
http://www.facebook.com/bienesraicesenorlando
http://www.clasificadosenflorida.com
0 votes Thank Flag Link Sun Aug 19, 2012
Personally I don't think you are "under contract". Your contract should have provided for all liens and mortgages associated with that legal description. Because you were unaware of these liens you don't really have what we say a, "meeting of the minds" between seller and buyer. So request your earnest money back or redo the contract. Hope it helps
0 votes Thank Flag Link Sun Aug 19, 2012
Hi Melissa,

Unfortunately, this happens. The agent now has to negotiate with the 2nd lien holder to get a pay off order then they have to submit that order to the 1st lien holder to see if they can pay it. If not the agent will of course see if the Homeowner can come up with any funds to take care of it or they may even ask you to contribute to pay off 2nd lien. The property cannot close until that 2nd lien is satisfied; if you can contribute to get the 2nd lien satisfied then you should not be worried; if you cannot contribute to get the 2nd lien satisfied then you should be worried. Hopefully, another player in the transaction will be able to resolve this 2nd lien.
0 votes Thank Flag Link Sun Aug 19, 2012
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