I found a person who no longer wants their second home. The house is worth 90k but it currently has two mortgages attached for 85k. The problem is that the person is not late with their mortgage. They desperate to sale but have no takers. They have maintained the mort but really cannot afford it and is willing to do anything to get out of it.
My question is can I do a short sale with a mortgage that is not delinquent? And what solutions can I offer this customer?
Why would a lender want to take less on a property when the current borrowers are making the payments? The borrowers would have to be a couple of months behind on payments before their lender would consider a short sale. If the property is worth 90K and they are obligated for 85K, there is not enough equity to consider a purchase.
Get an authorization to release form and contact the lender & get a short sale package. Since SS take time, by the time the paperwork is submitted, the person might be late with their mortgage. And the paperwork would show that they are in a hardship situation.
I look for these more and more now. your competition is generally zero, as you see with the answer above.
contact lender
Tell them the loan is in immanent default due to the sellers financial hardship.
show them because of the financial hardship that repairs have not been carried out on th e property in xx number of years.
supply a contractors estimate.
send in a FULL short sale package and away you go.
Mitigators will see this as proactive and do the deal.
Remember it’s not all about the money.
You will make some. But yoiu’ll be helping the debtor get out a hole and you will either be rewarded on this one or another one… it doesnt really matter.
Also yu could short the second or buy the note and keep the first current and sell it that way… loads of exit strategies here.
Does it make a difference if the owner has the two liens with the same bank? Will the bank still be willing to do the short sale even they own both liens