Is it possible to SS ONLY the second mortgage and keep the first? The mortgages are held by 2 seperate lenders. Does the lenders have to talk?
You have to submit a package to both lenders as in a normal short sale. The buyer in my case, decided that they could do a loan assumption on the first. The sale was transacted just like a short sale - with the second getting shorted. The second recieved $1K in exchange for a release of lien. Once we got that, the first originated a new loan for the buyer.
Note: The second in this case proceeded with an unsecured note for 50% of their balance which they submitted to escrow prior to close of the short sale. The homeowner did sign the note, but proceeded to file bankruptcy against that and other obligations. (The 2nd would only agree to giving a release of lien if homeowner signed the note at escrow).
Do I need to mediate this or will they get better results from doing the SS themselves?
If “they” are the Buyers, then they should be able to negotiate this for themselves. If “they” are the homeowners, I would step in on their behalf. Distressed sellers are no (emotional) match for the heartless lenders.
Second position lien holders will deal most of the time in today’s market. You can get them to accept as little as 10 cents on the dollar.
I would negotiate for the client because you are dispassionate and the borrower is most certaintly not.
OK, the homeowners can afford the property as longs as the second is gone. But IMO, they can afford the whole thing, but it’ll leave them little to no money every month. What exactly should I put in the package if a hardship can’t really be proven? Don’t get me wrong, I CAN prove it, but are there other constructive ways to go about this to kill the second? The second is being held by SAXON Mortgage, anyone with experience or inside info to share?
Call Saxon and ask them what they are willing to do. I do a lot with Saxon and they are always willing to work with us on behalf of our clients.
You are saying that they can keep the home if the second is gone… document that properly and you should be able to make it happen.