I submited an offer on a short sale to the sellers agent who submitted it to the bank of the 1st morgage.

Asked by Tucson Buyer, Arizona Wed Mar 4, 2009

The property also has a second that everyones aware of, do they submit to them as well? Do they have to sign off as well? How does that work?

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John, Home Seller, Phoenix, AZ
Fri Mar 6, 2009
The correct way to manage a short sale where there are more than one mortgage is to negotiate with both lenders at the same time. The lender in the senior position will allow a portion of the short pay off to go towards the 2nd mortgage. This is typically 2 to 3%. In my experience, the 2nd mortgage company may try to hold out as long as possible, so be prepared. Also, since there is a second, the lender could require the seller to sign a promissory note which may further delay the process.

My company handles short sale negotiations for agents and investors in Tucson and Phoenix areas and have a lot of experience in these matters. Although I am not a real estate agent myself, I would be glad to give my two cents should you need some additional information.
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George Szkup, , Tucson, AZ
Wed Mar 4, 2009
Tucson buyer,

I agree with the agent who alredy answered you - short sale transaction may be difficult even for experienced agent.
As a buyer you are working with the seller through sellers' agent. Seller set the price and his/her agent conveyd it to you. How the mortgage is structured is sellers' and his agent concern. Relation between lenders should be addressed by the seller before placing property on the market.
For practical purpuses - more than lkely issue between lenders has not been resolved and you will not be able to buy this house unless you accept the lean for the second mortgage. And this may not be economical?

Good Luck and where is your agent on this issue?

George
http://www.DestinationTucson.biz
http://www.LuxuryTucsonRealEstate.net
0 votes
Paul Welden, Agent, Scottsdale, AZ
Wed Mar 4, 2009
Ask your Buyer's Agent these questions. However, it appears that you do not have a Buyer's Agent representing you, and that you are trying to buy this home unrepresented by going directly through the seller's agent. So, you need to ask the seller's agent these questions or your real estate attorney, because nobody here will be able to advise you.

A word of caution: DO NOT BUY ANY TYPE OF PROPERTY WITHOUT YOUR OWN INDEPENDENT REPRESENTATION.

You have lots of questions and concerns and because it appears that you do not have your own independent representation, you have nobody reliable to go to for advice. Sure, you could go to the seller's agent for advice, but s/he works for the seller ... not you. Anyways, you may be best advised now to get a real estate attorney involved to assist you, and next time .... DO NOT BUY ANY TYPE OF PROPERTY WITHOUT YOUR OWN INDEPENDENT REPRESENTATION.

-----
PAUL WELDEN
Buyer's Agent Realtor
HomeSmart
480-241-0081
Web Reference:  http://CheapPhoenixHomes.com
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