Replies to This Discussion

Permalink Reply by Lisa Cedillo on October 28, 2013 at 11:49am

I'd be interested to know how others have faired in this situation.  We were told in our situations (which both have closed) that the Seller (or whomever in the transaction is willing to pay, sometimes the buyer will take some of it on)  is responsible for whatever balance the 2nd is willing to accept, in ADDITION to ALL SELLER CLOSING COSTS, including Commissions, since there is technically no short sale on the 1st who usually covers the Seller's Closing Costs & Commissions.

Permalink Reply by Jeff Payne on October 29, 2013 at 5:36am

This is not any different than any other short sale.  Submit the HUD-1 with the payoff to the first and give the second what is left over.

Lisa Cedillo, there is a short sale, the second is short and will need to be negotiatied.  The second simply gets the remaining proceeds.

Assume first is owed 200K and second is owed 100K.  NET proceeds after ALL expenses and paying off first leaves $25,000 left over, that goes to the second and must be negotiated

Permalink Reply by Lisa Cedillo on October 29, 2013 at 6:26am

Jeff, in our cases, there was barely enough to cover the 1st, although the first was aware of the short sale, since they were not short and they were getting paid, they had no interest in the transaction, it was Citibank, they told us to negotiate with the 2nd, since there were no proceeds (about $800) left after the 1st was paid off, and NO SELLER CONCESSIONS PAID yet, leaving ALL Seller Closing Costs including Commissions and the 2nd, left to be paid off.  (By the way, this was a divorce and both parties had vacated the home, and neither would agree to make any further payments, leaving us in the Short Sale position.)  So, ultimately in this case, the Sellers and buyer agreed to split the difference and pay the $3000 the 2nd agreed to in addition to all Sellers Closing Costs and Commissions for both agents, a total of $8000, where basically the buyer came in with an additional $2700, and both Sellers came in with $2700 each and we Closed it.  But it was tough negotiations with everyone involved.