Quote:
Originally Posted by sleepless in ca  Hi! My condo is on the market for a short sale. My agent is taking care of everything and hired a third party to negotiate the short sale. I trust him but just would want to know what happens to my 2nd mortgage.
Loan amount 1st lender: $305,000 ++
2nd lender: $77,000++
We're selling at $199,000. So far, have 2 offers. My second lender is still calling me at home (computerized calls). I asked my agent about this but he told me not to worry about it cause everything's being taken cared of.
Question 1: Can my second lender still foreclose the condo even if it's in the market already?
Question 2: Are there any fees (connected to selling) that we should be paying or will the lender take care of it?
Any advice will be greatly appreciated. |
Are these purchase money loans by the way? There is a lot of information on this under Deed in lieu of foreclosure forum. You have a lot more leverage with your lender if you are in CA and your loans are purchase money. Your 2nd is not secured anymore and from what I have read here there is almost no chance for them to foreclose, they wouldn't get anything out of it because they would have to pay off 1st... so they generally wait and do nothing.
As far as fees and if the lender requires you to bring some money to the table it is all up to your negotiator and what the lender agrees to.
In your situation I would really make sure that if both lenders agree to a short sale that they also release you of any liability of owing anything extra.
When you get paperwork from the bank get a lawyer go over it to make sure you understand what you're signing. Trust but verify.