This in not the place...

I realize this is not the place for this question. Not getting any luck in the SS forum.
How to you structure/negotiate a short sale with two loans. I have only done on SS, successfully but only had one loan.
Here are the numbers:
1st: $239,000 (countrywide)
2nd: $59,000 (CitiMtg)
Total: $298,000
Value: $265,000

I’m not sure what you mean by structure…but you need to buy this house low enough to make a profit…so you will need to get countrywide to approve a short sale for less than owed. Is the house in preforeclosure? This is when Citi will be motivated as they will lose all their investment at the auction. There isn’t enough info regarding this situation yet. Are the owners in a hardship? If not, that short sale isn’t getting approved. What else can you tell me about the situation?

Yes they are in Financial Hardship. Divorce the wife is giving my client 4 months to sell or do whatever because at that point she’ll stop making her half of the mortgage payment. The house is not in pre-foreclosure. But i read somewhere in in REIclub that you dont need to be behind which conflicts with some info i read a while back, online. In that article it statad you “did” need to be behind. But here someone said you don’t have to. Hm. I Don’t feel i’ll have a problem because they are upside down in equity. what i am confused about is how do negotiate the 2nd. I mean i don’t want the 2nd knowing what is owed on the 2nd because they might put the 2nd at an advantage over me when i negotiate. does this make sense?

That makes no sense at all. :biggrin

However to answer one of your questions. You need to negotiate seperately. The second lien lender stands to lose the most so start negotiating with them first. The first lien lender is not going to budge until the payments stop coming. They have so many properties going into foreclosure that they will not even start negotiating until it is a month or two behind. The second lien holder may be the same way.

This is my understanding.

You need to send the SS package to both Lenders The Amounts you are offering to each lender will be on the Hud-1. If the owners are heading for foreclosure or the 2’nd thinks it is, they may take a little something instead of getting nothing at the foreclosure.

you got it!

So regardless, the 2nd is still going to know how much i’m offering the 1st? If i’m sending both lender a HUD-1 settlement statement isn’t that going to make it harder to neg with the 2nd knowing that they know what i’m trying to pull off?

The other friggin’ thing is… is that the HO is NOT even behind yet… He is going through a divorce and ex is only giving him 3 months to sell before she stops chipping in her half. total combined debt is 290K and it’s worth about 245K. The balance on the 1st is 245K and the 2nd is 45K. I’ve been hearing conflicting stories. Some say HO’s have to be late in payments, others say you don’t. (depends on the situation) Well once she stops paying her half he won’t be able to afford it! I don’t want to tell him to NOT make his house payments. I feel they might accept it because there is no equity. He’s upside down for christ sake… Oh, one more thing. He is thinking about buying later… never thought of this but since i’ll sell it for 80-90% percent below value, is there anything that states he can’t get another loan to buy later? Help :argue

If you can’t get the other person on title to be on board with this sale, walk. They will have to sign off their interest in title even if the lender approves the short sale.

So…should i just have her deed her right now while it’s still in it’s early stages than? They don’t live together.