Only need to do a Short Sale on the 2nd mortgage - Is the process the same?
I have an client, where when I looked at the overall market value of the property and the 2 liens on the property, based upon the projected sales price there will be enough to provide a full payoff to the 1st lien, thus we just need to get a short payoff or short sale the 2nd lien. Has anyone had to do this? I assume the process is the same, just want to get some insight when just dealing with the 2nd lien only. Thank you for the insight!
Replies to This Discussion
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Permalink Reply by Kent Dills on
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Myra, you only have to submit the package to the 2nd lien holder. Process is exactly the same. Keep on rockin!
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Permalink Reply by Myra McCaskill on
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Kent, Thank you. Since we only need to short the 2nd, will they order a BPO and do the same steps as the 1st lien?
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Permalink Reply by John Edelman on
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Yes - they will order a BPO and do all the same steps. But - to protect yourself and your seller - you should order a payoff from the first lien holder through or past your projected closing date.
Then have your title company prepare a prelim HUD1 with that payoff to the 1st and all of the rest of the standard short sale costs - what is left over is what you will be offering to the 2nd.
Sometimes with late fees and additional costs that the 1st adds on - the payoff for the 1st is higher than you think and after the rest of the short sale fees are paid, there is nothing left for the 2nd. -
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Myra, John's got the details correct - as usual. Follow those directions and you will be well on your way! ;-)
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