Replies to This Discussion

Permalink Reply by Patrick Harvey on September 19, 2013 at 12:34pm

Well the nastiest thing to do, if you are in a nonrecourse state like Arizona, might be to offer to buy the 1st and then foreclose it and wipe out the 2nd entirely. Otherwise you do a short sale on the 2nd only and the 1st probably won't care. They are likely two separate investors that ultimately have to approve the deal, no sense in talking to the 1st at all.

Permalink Reply by Joanie Cubias on September 19, 2013 at 12:42pm

Haha, that could be possible if the first wasn't $1.2K. ;)

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on September 19, 2013 at 12:42pm

Patrick is correct.  No need to work with the 1st and just submit a short sale on the 2nd - showing full payoff to the 1st.  Since the owner is past due on the 1st, you will need a payoff demand from them to put the HUD-1 together to show the 2nd.  I expect there are penalties, late fees and accrued interest plus maybe legal fees, etc. so all of that will have to be in the "payoff demand".  I expect the 2nd will want the commissions reduced if that;s what's making it a short sale.  The real kicker here is that there is enough equity to payoff the first and most of the 2nd so the 2nd can foreclose (subject to the 1st) and subsequently sell the property using their own agents and without paying the full commission of the current 2 brokers.  Work it as hard as you can to try to get it done.

Good luck !

Permalink Reply by Short Sale Superstars LLC on September 28, 2013 at 4:41pm

Joanie,

I'd initiate the 2nd in equator and run it through as a short sale. Offer them the proceeds that are left over after the 1st is paid in full. You might find that you need to short the 1st in order to get the deal done depending on the figures and the payoff to the 2nd.

If you have any questions feel free tor each out to me as my door is always open.

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