I encountered a unique situation soon after putting out my first bandit signs: “Jenny and Ed” are on a title where Jenny’s mother is the borrower (and not on the title). They definitely paid too much 2 years ago and are now 4 months late and heading to foreclosure ($369K-which is also the balance of 2 mortgages today with the same lender). I would only be willing to offer about $210K in order to be able to wholesale the property. “Jenny” indicates that she is willing to see $69K transfered to her mother’s other mortgage (not this property) and pay $300K to the lender so that her mother doesn’t get too jammed up. Would a traditional lender be able to transfer a portion of the balance (i.e. $69K) as a second to another property, and then possibly approve a Short Sale for $210K?
If I understood your question correctly NO !!
If Jenny’s mother is the borrower you will have to prepare the package using Jenny’s mother as the MAIN character in this short sale. Your PA will need to include all 3 people. The bank wants to see the barrower’s situation, not who is in title. If Jenny’s mother does not have a hardship dont even bother doing this…