You need to work out a short sal between the Purchaser and the Lender. In the case of a short sale, the offer is not high enough to pay off the mortgage(s) on the property. Logically the lender should look seriously at these offers. Although they are taking a loss on a loan, the lender avoids the high cost of foreclosure and avoids the risk of adding another property to ever growing inventory of foreclosed homes. In practice, however, the process has proven to be very difficult. The lenders do not have the business model or the resources to adequately address these offers. Personally my team has worked on two properties of behalf of sellers. In one case, the lender (1st mortgage) is trying to work with the offer as well as offer compensation to the equity line lender. In the other, we could not persuade the lender from stopping the foreclose and the lender bought it back at auction for $5,000 below our offer. Let you agent lnow what your needs are. There may be an investor waiting for your property.
Best of Luck,
George Cumming
RE/MAX Commonwealth
http://www.homesinrichmond.info - Sun May 25 2008, 20:39