After much agony, we decided to SS our house. paid 225, owe 200, worth 110-125. We have a buyer who is buying at banks 125 counter (he must LOVE the house… well, we DID remodel it to the tune of 20k…OUCH!)
We have a 170 bal on 1st and 30k on 2nd. We’re waiting on the final approval from the bank so our buyer can get his loan. Of course the bank needs the same financials in varying formats for the umpteenth time. So if all goes well, we close with them, but when the heck do we find out what the 2nd mortgage is getting? Should the 1st be negotiating this amount with the 2nd? When do we get the 2nd to “sign off” on X amount the 1st “gives” them, and release us?
And, we’re in AZ (anti deficiency state) and covered by the Debt Relief Act so they “cant” come after us for deficiency (house is 225k, no heloc or other loans, primary residence since purchase 5 years ago) and we can use the “primary residence exclusion” so we aren’t taxed on the forgiven amount… WHEW!
But, how does this all affect the 2nd mtg?
One last thing, where do I look (county recorder?) to find out if the house is in forclosure? I want to know before I get the notice in my mailbox/on my door. I trust nobody to properly notify me.
Thanks for your help all. I just feel like I am the one stuck figuring out all this SS stuff so I don’t get screwed.
Thanks!
Hi,
Since it appears you are handling the short sale yourself and have no realtor you should have submitted a "Short Sale Hardship Package" to your second trust deed lender at the same time you submitted to your first.
The first trust deed holder will not negotiate for your second, it was up to you to include something to pay off the second in your total sale price, and it will probable need to be at least $3k to $4k dollars, which should have been included in your estimated hud 1.
Now your going to have a timing problem as it may take 2 or 3 months for the second to decide what there willing to do just like I presume it has taken 2 or 3 months to get the approval of your first, now your first is probable not going to leave this offer float 2 or 3 months so you may have to start all over again.
I just hope your buyer stays willing to buy the place long enough to work out all these details?
In a “Short Sale” unless you have someone representing you (Realtor), you should send out Short Sale packages to everyone who has a senior or jr. lien on the property. You are the only party who is authorized to talk to your lender about your loan. The first never negotiates with the second as they are in first position, the property is there’s whether by short sale or by foreclosure!
In Arizona it is county recorder and initially would be filed as a notice of default for 91 days prior to your lender filing a foreclosure notice and setting a sale at the court house steps, it should be Law Firm Tiffany & Bosco handling the foreclosure as they handle 98% of Maricopa County Foreclosures.
Good luck to you as I think you will need it.
GR