I have been doing short sales as a paralegal for over five years. I now have my real estate license. I have a potential listing for a property in my area, its will be a short sale. However, the seller has a co-borrower who is a parent.. Anyone deal with this before? I am afraid that they will try to prove the co-borrower has a hardship also. Sellers job is moving to Texas so he has no choice but to sell..
Any advise? thanks guys!
All borrowers on the loan are liable for the debt and will need to provide financial documentation. Depending on investor guidelines and borrower circumstances will play key roles in what direction this moves in.
Hi Liesa, does the parent live in the property? I've been able to get a warranty deed (transfer of title) from the non occupying borrower to give their rights to the borrower living in the property. I take the warranty deed and a signed letter by both borrower with written explanation for wanting to remove the non occupying borrower and submit all that to the short lender. You can even ask the lender for their advice on what would be acceptable documentation to remove the parent borrower from the short sale review. Hope this helps and good luck!