2nd Mortgage Short Sale....help???

I just fould a motived seller today by cold calling. I would like to do a short sale on this deal.

First loan 35K -insured by FHA
Second 24K
The house conservatively worth 60k

I want to short the 2nd…I am thinking offer them (1-3K) I don’t know if they accept it or not
I would like to know how much should i offer them (2nd mortgage)

and I need to know what document to put in the shortsale package for 2nd lender…

Please help…

the house was 6 months behind on the payment

Go for it. Don’t worry about it… The 2nd will tell you what they want. Let us know how you make out.


But How to do the shortsale on 2nd …


You need to contact the 2nd and get a fax number. Then send them the following information from the homeowner: Hardship Letter, 2 months bank statements and paycheck stubs, financial worksheet (incoming$ vs outgoing$), comps, pictures if the house is in bad shape, purchase contract with proof of funds, and a net sheet showing what you are asking them to take as a short payoff. Then call them every other day to make sure the file is not sitting on someones desk for weeks.

Hope that helps!


I already talk to the bank. I asked them for the short sale package, but they say just send them the offer, HUD sheet, and first 3 page of appraisal report only if i have.

Let me ask you this Steve: on the HUD 1 sheet…I just put the 2nd mortgage net or do i have to include the 1st lender net too?

I usually send the HUD1 showing the payoff on the first AND the actual payoff demand from the 1st. The reason you want to do this is because as the days tick by, the interest is adding to the principle balance and coming directly off what the 2nd is owed. The more reasons you show the 2nd why they need to take less, the better. Also, I would send ALL of the information I mentioned in the first post because I have had lenders tell me just what they told you to send only to find out later that they needed the rest of it anyway and delayed the deal for several weeks.

I am just sharing some experiences I’ve had and every deal is unique, but I’ve found the more info I give them, the better my success has been.