I have been doing short sale for sometime now, but this is a first where the bank is getting more money back then the net proceeds. I know that anything over the net must also go to the first.  I have a short sale where the 1st trust payoff is $125,000.00.  The borrower has a second trust with a credit union for $63,000.00.  We have a offer for $200,000.00.  On the first trust it shows the bank getting back $174,000.00.  Forty nine thousand dollars! The borrower owes his HOA 13,000.00, which the 1st trust is not going to give no more than $1500.00 towards his delinquency. Even if the bank agrees to pay the HOA, the bank is still getting more than the exceeded net amount.  This leaves the net at $154,700.00.  If the second see that the 1st trust net proceeds is more, I am thinking that this will cause a problem, meaning the second is going to request for more money. The 1st trust is making a profit of $29,700.00!

 

What can be done in this matter:

 

A. Convert the 1st to a regular transaction do a promisorry note with the HOA to pay it off at closing and also with the second trust/collections to pay 1/3 of what is owed to them? At this point they will be getting more than what the 1st trust will allow?  Please advise.

B. Close and let the 1st make a profit of $49,000.00 and not pay the HOA delinquency

C. Continue with the short sale....and offer $6300.00 to the second and 1500.00 towards the HOA.

 

 

 

 

 

 

 

 

Views: 37

Reply to This

Replies to This Discussion

From what I read there, Fannie Mae's guidelines are not new (a link to these rules is in the SSS Fannie Mae group), it's just that Sun Trust is now adopting them.
Thanks

RSS

Members

Badge

Loading…

© 2017   Created by Brett Goldsmith.   Powered by

Badges  |  Report an Issue  |  Terms of Service

********************************** like buttons ************************