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Asked by Kit, Houston, TX Mon Mar 31, 2008

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Answers

6
Bruce Lynn, Agent, Coppell, TX
Tue Apr 1, 2008
Danny is probably on the money on this one. I'd just go back to the second and get their understanding that the $1000 is a goodwill gesture, that you can't pay the $4000 to make the deal work and encourage them to take what they can get or get wiped out shortly at foreclosure if that is what will happen. Are the mortgages current or delinquent? How much time is left? If they won't take the $1000 from the 1st then I'd probably just wait it out. Cashiers check at the title company is of course normal procedure.
Web Reference:  http://www.teamlynn.com
1 vote
Danny T Thom…, , Austin, TX
Tue Apr 1, 2008
If the Lien holder finds out about the "under the table" agreement with the second, it is likely they will pull the deal. I suggest you keep everything above board, tell the first what is going on and see if they will agree to allow the second to receive the 5K that you have agreed to pay(1K + the 4K ). Although it is likely they will say "no", at least you won't end up losing time and money, or worse, end up in a legal battle.
The truth is that the second will lose everything if the foreclosure goes through. I have dealt with several Short Sales that have had this situation. The 1st is in the strong position, and the 2nd stands to lose everything. If they get along, the 2nd will agree to take the 1K in order to build goodwill with the 1st, so if the tables are turned on the next deal, the other bank will return the favor. If the 2nd is a minor player in the mortgage industry, or has a poor reputation, the 1st will just foreclose, and let the 2nd lose completely.
In any case - all the best - my best advice is stay honest and forthright in all things. What happens happens, but at least you can know you did the right thing. And since a man reaps what he sows, it will all work out in the end.
1 vote
Ron Tarvin, Agent, Houston, TX
Tue Apr 1, 2008
It sounds like you are in a "right hand doesn't know what the left hand is doing" situation where one lender wants to get over on the other. If all the rules are followed and this additional payment is made properly, it will be on the HUD-1 or settlement statement and I would venture to guess Lender 2 will pull the plug. Why should they take the hit when lender 1 is recouping the additional funds?

I would certainly be wary of this situation...If you do ANYTHING "under the table" you are taking the risk of being in violation of loan fraud.

If it is ON the HUD-1 Settlement statement, you have the settlement statement at least 24 hours and hopefully 48 hours prior to closing (so that all parties can examine the document) and each of the lenders are ok with the way it is being done, you will probably be ok. Like I said, likely scenario is that bank 2 looks at the HUD and says, ummm, no. The lenders are protecting themselves and trying to get every penny out that they can, by hook or by crook, as the saying goes!

Be CAREFUL. If you do not have an agent to advise you on this, please at least consider a real estate attorney to look it over...
Web Reference:  http://www.katyagent.com
0 votes
Hi, , Virginia
Tue Apr 1, 2008
forget it
wait until it is foreclosed REO
will probably be cheaper

anyways

good luck
0 votes
Paul B. Perez, , Austin, TX
Tue Apr 1, 2008
Cashier's check? Sure, but make it payable to the title company! Everything should be on the HUD! If the 2nd lien holder is asking for all this money then they must be losing a ton! I would walk away because if it looks like poop and smells like poop, darlin it's poop! Anyway, short-sale and forclosed = NO CLOSE! Bad energy surrounds this home, you will just invite this energy unto yourself! Never-mind walk: run away Gato!
0 votes
Dallas Texas, Agent, Dallas, TN
Mon Mar 31, 2008
Where is your real estate agent to assist in this matter?

a) Where is all this information in writing
b) I have worked on short sales from a listing agent and buyer agent standpoint now heard of this

Something appears to be a little fishie too me

Since I am not your real estate agent dont know all the facts I am tooo much in the dark for further comments

Good luck
Web Reference:  http://www.lynn911.com
0 votes
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