Short Sale Or Regular Sale

Discussion in 'Short Sale Outpost' started by airahcaz, Dec 29, 2015.

  1. airahcaz

    airahcaz LoanSafe Member

    First mortgage is $500K
    Arrears $100K
    Second mortgage is $200K and charged off years ago and haven't heard from GreenTree in years either.

    Property value is approx $700K currently

    Would this be considered a short sale if the first can be paid in full? If a SS, what does the second get? All of the remains?

    Should one consider attempting to contact the second mortgage lean holder and settling? (although 20 or 25% is not cash that is on hand for a settlement). With the second gone, this would be a considered a regular sale, but it's a bit of a catch 22 cause the 2nd doesn't seem to want to settle for an amount that is feasible.

    TIA
  2. Moe Bedard

    Moe Bedard Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    Hello,

    It would not be considered a short sale. But you will have to get the second mortgage to agree to the sale by releasing the second lien that is still on your property. Yes, you will have to get them involved and to agree to some sort of settlement in order to release the lien so you can sell the home. If you do not, then you simply won't be able to sell.
  3. airahcaz

    airahcaz LoanSafe Member

    It's not a short sale even though the second mortgage puts the property under water?
  4. airahcaz

    airahcaz LoanSafe Member

    And if I can't sell, then it goes to FC and the second gets what they can from there?
  5. Erik Sandstrom

    Erik Sandstrom Mortgage Expert - Call 1-619-379-8999 Staff Member

    What Moe is saying is that the 2nd mortgage has to agree to a short sale as well as the 1st. Since the 2nd mortgage has vested interest in the property and a lien they have to agree as well as the 1st, if they don't it will end up in foreclosure and then the 2nd lien holder will get paid whatever is leftover.
    Moe Bedard likes this.

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