Replies to This Discussion

Permalink Reply by Kevin - Greenville, SC on April 4, 2012 at 5:06pm

The most Sr. Mortgage being shorted should be request to pay commissions.

Permalink Reply by Thom Colby CA Brkr 888-391-5245 on April 5, 2012 at 3:36am

Make sure the 1st is not short by requesting a Payoff Demand from the 1st with a realistic date for closing.  Then have the HUD drawn up just like any other sale.  Show the entire payoff from teh demand on the HUD for the 1st.  Make sure all costs are included on the HUD; Escrow, Title, Commissions, Taxes, County Stamps, etc. Whatever amount is left over goes to the 2nd.  Submit that and the payoff demand from the 1st to the 2nd for short sale approval.  Depending on the lender, it should be relatively quick to get it done.  Make sure all of your costs are appropriate and not outrageous - don't include any costs you know the lender will reject such as HOA, Home Warranty, etc.

BTW, you do not need approval from the 1st if they are not being shorted.

 

Good luck !

Permalink Reply by JULIE WALKER on April 5, 2012 at 3:59am

Thank you both..that was very helpful. Both loans are with Wells Fargo with the second being a HELOC. Have either one of you ever had Wells release the seller of any deficiency in relation to a  HELOC? I'm guessing no but just curious. thanks again!!

 

Permalink Reply by Mary Ferris on April 5, 2012 at 5:52am

What state are you in.  In Claifornia if any lender agrees to a shortsale, they release the seller of any deficiency.

Read your approval letters carefully.

Permalink Reply by JULIE WALKER on April 5, 2012 at 6:05am

Florida