I hold 1st & 2nd, both with Wells Fargo. NOO Short sale possible?

Foreclosures, Short Sales, Tax Foreclosures
1

1st $ 55,700 Wells Fargo
2nd $ 16,500 Wells Fargo

North Atlanta area condo Current value: about $ 65k - 75k

How does Wells Fargo owning both 1st & 2nd, and property being non-owner occupied affect a chance at a short sale? I am willing to (assuming the bank allows) re-pay upto say $ 5k in order to make a sale happen. However, I am not able to pay or borrow any money at this time to reduce what is owed on the property.

This was my primary residence 3 years ago. I have been renting this condo at negative cash flow to stay competitive at market rent, but now tenant intends to move out. I can continue rent it out but I feel the complex is going down hill & I want to sell now before values gets worse than they currently are.

The 2nd mortgage was used to upgrade the condo with intention to sell initially. It sat on the market with minimum traffic & no offers. So I decided to rent it out until all this housing “market mess” blows over. I just found out the HOA has no cash in reserves with a building (not mine) needing major work done. 30% of units are behind in HOA dues. Think it’s time to get rid of it.

I have a 700 credit score & know I am going to damage my credit with a SS for 3 years. I have never been late on anything but my credit usage is high that no one will loan me any money to pay off or reduce what is owed on the property.

I’d appreciate to hear from anyone with with SS experience.

Thanks

2

I would do a regular sale.
You owe 72k on a property worth 65-75k.
You’ll be out a couple grand + closing but it will save your credit.

pete

3

Recently my friend sold his PR home with Chase for less than he owed. He relocated and was renting the home. Was getting enough to cover mortgage but not the $6000 in taxes and insurance. His credit is perfect as well and was renting it out for over 2 years. He hired a lawyer to work out things with the bank…

What happened was…

Mortgage was $215K. House sold at fair market for $135K. Leaving an 80K spread. The bank gave him a personal loan for 80K at 4% interest with a 15yr amortization period. He did not want to ruin his credit and has no problem making the small payment on the 80K loan and plans to get it paid off faster. He figures when market bounces back, he can always refi current home with a 2nd to get it taken care of.

I know this doesnt happen often but it can