Posted by dan on March 23, 2006 at 09:59:34:
Great advice, Thanks!
I really doubt he’ll cancel the contract with the realtor though. I’d still like to try a short sale though. In order to get him to play ball and still protect myself I’m thinking I could present an offer to the realtor labeled ‘payoff’ contingent on reduced mortgage amount as you suggested. Can I get paid for my efforts negotiating? To get paid for my time I could add another clause saying in the event the seller accepts another offer I will get paid $500 if it sells within a month, $1000 is it sells within 2 months.
The hardship may be tough to prove, this guy’s house is mint. Nothing wrong with it. The hardship he experieces is that he has an expensive 2nd house that he is living in, holding costs on the first home, 4 kids, legal bills, etc. The first mortgage is well below his asking price, it’s the 2nd and the third that puts him upside down. Is that really the kind of hardship a lender is sensitive to? Could this be the kind of situation where foreclosure is the only way out?