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Message
Short Sale with a 2nd mortgage
Posted on 3/25/10 at 10:58 pm
Posted on 3/25/10 at 10:58 pm
I've been trying to buy a house through a short sale for over a month now. First mortgage accepted my offer 
, but the 2nd mortgage is being lame. The 1st mortgage offered the 2nd mortgage $3,000 to release their lien on the house, but they are demanding more. The 2nd mortgage was only worth $37,000.
The first mortgage is already getting about $30,000 less than what they are owed, so it seems they are being very generous by giving them $3,000. If the house goes into foreclosure, the 2nd mortgage is guaranteed to get ZERO.
Is there anything I can legally do to persuade the 2nd mortgage accept?
, but the 2nd mortgage is being lame. The 1st mortgage offered the 2nd mortgage $3,000 to release their lien on the house, but they are demanding more. The 2nd mortgage was only worth $37,000. The first mortgage is already getting about $30,000 less than what they are owed, so it seems they are being very generous by giving them $3,000. If the house goes into foreclosure, the 2nd mortgage is guaranteed to get ZERO.
Is there anything I can legally do to persuade the 2nd mortgage accept?
0
Posted on 3/25/10 at 11:37 pm to rmc
quote:
You realize this will be a loss of $34,000.00? Why should they do it just to satisfy someone who wants to buy the house?
$3,000 > 0
quote:
You have literally no way of knowing that.
This article leads me to believe they will be getting ZERO. Let's just say there's a 99% chance they won't get $3,000 if they foreclose, unless you can come up with a better scenario for the 2nd mortgage?
LINK
quote:
The second lender will always be in second position, unless the first is willing to subordinate. Ordinarily, a mortgage lender who is in first position will not subordinate the position. First in position is first in the right to collect from foreclosure proceedings. This means when a Notice of Default is filed, if the second lender wants to be first in line to receive proceeds from the auction or sale or to take the property back, the second lender must initiate its own foreclosure proceedings. In most parts of the country, this means the second lender must make up the back payments to the first lender, pay the first lender's cost to file the Notice of Default and associated expenses, and then file its own Notice of Default. If the second lender does not do this, the second lender could get wiped out in the foreclosure and receive nothing, especially if there is not enough money to go around.
Posted on 3/26/10 at 12:09 am to rmc
quote:
You have no way of knowing how much the 1st is owed
Really? That sucks. In King County I can easily find out the exact face amount + any arrears.
I think it's very possible for him to know the 2nd will get shite. I'm pretty active in the auctions here and I'd say my hit rate on predicting the outcome of 2nds is 100%.
Posted on 3/26/10 at 12:31 am to rmc
Why do you keep saying "sheriff's sale"? Aren't we talking about trustee sales here?
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