Replies to This Discussion

Permalink Reply by Christina Waymreen on June 2, 2015 at 7:45am

Thanks....

Permalink Reply by Julie Lyons on June 2, 2015 at 8:16am

The first lien will always prevail as they are in "first place."  The second lien/junior lien has no real power until the first lien makes a move, as they "sit second" to the first lien.  

We are now at a point when we are going to start to see short sales where only the second lien is short (enough to pay off the first, not the second)  I am asking buyers to make a small contribution to the second lien which has been working in these situations.

Permalink Reply by Christina Waymreen on June 2, 2015 at 8:26am

So, what you think I should do is initiate the  short sale with the first lien even though they will be paid in full and have them set the conditions for the 2nd lien. This way the sale will go through without the 2nd lien requesting payment in full or any other unreasonable conditions.

Permalink Reply by Julie Lyons on June 2, 2015 at 8:36am

You dont initiate the short sale with the first as they will be paid off from the proceeds of the purchase correct?  How much money will you have left over after you pay off the first lien, pay commissions, escrow fees?  Anything left over can be give to the second lien as a concession.  You can have the Title officer do a HUD for you showing the extra funds going to the second lien as a concession.  You will have to do a complete short sale package for the second lien as in any short sale.  

In theory, once the first lien is paid off, the second lien moves forward and becomes the first lien, they only gain power once they become the first lien (second lien cannot foreclose on a property if the first lien is still in place.)

Permalink Reply by Christina Waymreen on June 2, 2015 at 8:41am

Got it. Thank you very much.