SHORT SALE: What happens when the mortgagor and the 2nd lien holder's investor can't agree to terms of the short sale?

Asked by Mike Luzzo, Orlando, FL Mon Nov 29, 2010

Servicing lender's investor wants a cash contribution and the mortgagor won't budge. It's gone back and forth 5, 6 times. No one is giving in.

Got a strategy?

Happy Holidays!

Thank you .
Mike Luzzo
Top Value Group
...your HOME to the Top Values in Real Estate
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Wendy Golding, Agent, Orlando, FL
Tue Nov 30, 2010
Hi Mike,
Call or email me...I have a few suggestions for you.

Wendy Golding
Asset One Realty, Inc
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0 votes
Rodney Forbes, Agent, Port St Lucie, FL
Mon Nov 29, 2010

Depending on the amount you're talking about, you can use one or a combination of these sources:

-1st mostgage holder
-substitute a note for contribution
-one or more of the agents in the deal

You can also use the strategy of telling the 2nd mortgage holder if they don't cooperate the seller could let the home go to foreclosure and they get nothing.
2nd mortgage holders and MI companies are difficult to deal with. If nothing works, try to go over the loss mitigators head. Someone will want this deal to go through.

Hope this helps. Good luck to you!

Rodney Forbes
Forbes Realty of South Florida
West Palm Beach FL
2 votes
Alma Kee, Agent, Tampa, FL
Tue Nov 30, 2010
Do a HAFA short sale. If the owner is not currently residing in the house, he needs to move back in immediately for a lot of reasons. Tax consequences alone can be severe on a non-primary residence. Plus if the short can go under HAFA, your seller can get $3k relocation expenses at closing.
0 votes
Alan Martin, Agent, Orlando, FL
Mon Nov 29, 2010
Fannie Mae will help if it is a FNMA backed loan
0 votes
Mott Marvin…, Agent, Sunny Isles Beach, FL
Mon Nov 29, 2010

I?e been down that road too. The second demanded $18K. or no deal... Then we have a Florida Condominium Association ~ demanding 3 years of past due
0 votes
Edyta Gryc -…, , Fort Lauderdale, FL
Mon Nov 29, 2010
It won't be easy to solve the problem.
The only strategy that seemed to work for my clients ( I used the title company to handle the short sale) but it is not guaranteed is letting the current file be closed and re-submit a file in hope to get a different bank negotiator that will be willing to cooperate.
Good luck!
0 votes
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