I’m working with the ex-wife about short-selling her house. The husband has moved clear out of state. Their divorce proceedings declared that the husband gets “50% interest in real-property”. The problem is, the husband won’t respond to the letters we’ve been sending (we don’t have his phone number). Now I started thinking about this: even if the husband gets 50% interest, in a short-sale, the sale of the house nets the prior owners $0, thus, he would get 50% interest of $0 = $0, right?
Another interesting tidbit, the lender offered to sell me the foreclosure. In essence, I could be the one to foreclosue, wipe out all junior mortgages and leins and go from there. However, part reason of doing these short-sales is to prevent foreclosures from messing up people’s credit, so, I’m not sure I want to take that route - I’d rather let the bank be the bad one that did the foreclosure.
Final thing, how does a foreclosure get reported? I’d go thru with the foreclosure, if I could complete it but not have it report on the owner’s credit report(s). How do credit reporting companies become aware of foreclosuers?
So, how to work this short-sale? Specifically, did I conclude right about the “50% interest in real property” equating to $0 on the bottom line in a short-sale? Has anybody here foreclosed on a property they owned? What’s involved in all that? Thanks.