Posted by Dan on October 08, 2003 at 12:43:09:
You must speak to the Loss Mitigation dept at the bank that is holding the mortgage. You may want to ask them if they require forms to do one, like a net sheet, a hardship letter from the homeowners, comps, estimate of repairs … just to name a few. This is a really good way to do a deal that had no equity. The only way a bank will do a short sale is if the home is in foreclosure.
If you find homes in foreclosure with more than one mortgage, that can be a really good thing. If a home goes to the sheriff sale, only the bank in 1st position get’s paid, the other mortgages get wiped out, so many times if you contact the banks in 2nd or 3rd place, they will take pennies on the dollar because if it goes to sale, they will receive nothing.
Hope this helps.