I need some advice as to how to negotiate a short sale when the second loan (Equity loan) is foreclosing?
Here’s the situation – I just lock up a short sale where the 2nd lien, the home equity loan w/ B of A is foreclosing on the property ($95K). In fact the sheriff auction has already been scheduled. The first mortgage w/Citi-mortgage ($239K) hasn’t even sent a Lis Pendens yet.
Can anyone give me advice as to approach this, what should I know? … any do’s & don’ts?
Thank you!
Good to meet you…
If worth the headache and time build your SS package and submit to BofA and do it fast, time is not on your side. BofA happens to be a pain however they do close shorts…
http://homeloanhelp.bankofamerica.com/en/assets/documents/HAMPchecklist.pdf may help
Good luck
Michael
Thanks Michael, a pleasure meeting you as well.
How can the second lien foreclose on the property? I thought that since its a short sale only the 1st lien position would be satisfied and be able to collect? As well, I assume that I need to get a package in to the 1st Lien (Citi) quickly and let them know what’s going on?
-Mitch
Any lien position can foreclose. No matter if they are in 2nd or 100th positon. It all depends on what state you are in as far as the foreclosure law on how the redemption works. There is a great site for that information http://www.foreclosurelaw.org/ hope this helps to understand if not let me know what State you are in and I will be able to fill you in on more information. I have done Short Sales in every State.
I’m in New Jersey.
Yes a second can foreclose… Once they do the first will give them 30 days to pay off the note or the first will begin their foreclose… If the first forecloses then the second/new owner will lose their interest…
It is in the best interest of the second to work with you however I have found that BofA has a lot of new folks handling Shorts…
Good luck and do give summit a call if he is offering help, I would take him up on it…
Happy hunting…
Michael