My husband and I have been Realtors and investors for the past 8 years in Ocala and just move to Tampa last year. I have specialized in short sales for most of the last 8 years, and was just approached by an investor to do a short sale with different circumstances.
Has anyone in the group had experience with the following:
Investor purchased property at a tax deed sale, or where an investor purchased a foreclosure at auction and the Plaintif was the HOA?
The catch is- These properties still have an active 1st mtg lien, so the lender must agree to release the property for less than what is owed to the new owner/investor.
I heard there was a way to approach the actual lender/investor instead of going through the servicer to get the mortgage negotiated and paid off.
Looking for advice on how to approach this so the new owner/investor has a clear title.
Thanks for any help,
The only way I've seen of doing this is getting authorization from the borrower on the mortgage in order to talk to the lender. However, I'm not sure that will work in this case.
Usually, if an investor buys at an hoa auction, they've somehow already found out what was owed on the mortgage and are going to try and sell the property and make money off of the equity. They don't try and do a short sale after the fact, the reason being that the lender won't usually allow a short sale once there's been a title transfer.
check w/a local attorney.
Thank you for all the input! Very clear on the difference in tax deed sales with QT and an HOA foreclosure now. It appears the HOA foreclosure may not have a very good outcome for the new owner.
If anyone has any other experiences with getting a 1st Mtg to agree to a short sale after title has transferred to a new owner through HOA foreclosure, please let me know.