I have a short sale listing coming up. There are two loans, both with Chase; the first has a very low balance. The 2nd, a HELOC is at approx $100K. My dilemma is; when the home sells at market value, the first will be paid off and the 2nd will not.
I took a similar listing,(also with Chase), several years ago. I tired to sell it as a straight short sale. that didn't work so I tried to sell it as an NA/short sale. In both cases I had offers. It seemed no matter what I did, the 2nd would not agree.
In this case; selling at market value, the first would not be selling short so they are not going to absorb any of the short sale fees usually paid by the short sale lender. After seller pays all the normal transactions fees, there is not much left for the 2nd.
Has anyone had luck with sale of this type? Thank you for any suggestions you can give.
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The 1st needs no communication. All you need is an anticipated padded payoff from them. You will need to see if the second will accept the short sale. So send in their short sale package to the second with a low estimated net to the 2nd and see how they respond.
You can also have your client look into chapter 13 bankruptcy to either force the 2nd to negotiate the 2nd lien or to strip it off completely.
Thank you for the reply. The information helps a great deal. Best Regards