I’m currently working on a shortsale deal and found out the owner has a second property in default. He would like to short sale one and keep the other.
My question is, will a bank he shortsales or forecloses with go after his other property?
How should i advise my client?
Thanks in advance for your response.
You cannot allow the owner to stay in either property. You will be in a world of hurt if you try to lease option strategy. If you go the rental route only, that may be ok. The banks do not care if the HO is in the property if you buy, but why do you think the HO would pay you any rent money if they didnt pay the bank? Something to think about
Thanks for the info Steve.
To be a little more specific he would like to get current on payments with one property where the monthly payment is still affordable and shortsale the other property. I would not be leasing back the property.
what i’m trying to find out is if he has one property that is shortsaled or foreclosed will the banks try and go after any other property he owns even if it is current?
Generally speaking and with the caveat that I may have no idea what I am talking about, but…
… simply because the homeowner has other assets has no impact on the pros and cons of the bank accepting the short sale. However, it does have something to do with whether the bank will or will not sue the homeowner for the deficiency balance.
If the bank thinks that they are going to be able to get their money, you can damn well bet that they are going to try.