Preforeclosure Short Sale Advice? - Posted by Stacy (AZ)
Posted by Stacy (AZ) on April 10, 2000 at 06:26:39:
I just put a preforeclosure under contract, contingent on successful negotiation of a short sale with the first and second mortgage holders. The first mortgage holder is owed $105K principal balance, plus about $3500 in late payments and fees. I am offering to pay the 105K balance, only. The first is foreclosing, and the trustee’s sale is scheduled for May 15.
The second mortgage balance is $13K, and I’m offering to pay $6K. FMV is $142K, and the only way the sellers would sign is if I also promised them $6K. They’ve already been through a couple of investors that have not included the $6K at close, and the sellers would not sign a contract with them.
I have attempted short sales in the past with no luck. For those that have had success, would you recommend that the sellers speak to the lenders themselves, since they already have a contact that has been working with them? Or, would you recommend that I start the negotiations myself? I’ve got a release signed by the sellers that allows me to discuss their accounts.
Since the trustee’s sale is now scheduled, do I need to go through the trustee with the short sale negotiations on the first?
And last, the lenders are not going to be very “happy” when they see that I’ve promised the sellers $6K, while asking them for a short sale. I’m not sure what to do if the lender needs to see a copy of the contract.
Any help would be appreciated.