Posted by Kristine-CA on July 13, 2003 at 24:09:26:
Jay Phx: I’m not a short-sale investor. I’ve tried a few but either ran out of time or was not able to get the bank to go for it. You’ll need a short sale package from the lender. It’s not like they just make a quick decision on the phone. (I’m assuming this is an institutional lender.) There is an appraisal involved and your seller will have to show hardship, etc.
Regarding your question about double closing. I am unsure who the purchase contract is with in a short sale. Is it with the bank as the seller, or is it with the seller, with the bank as a lienholder? I never got that far. A lot will depend on your contract and who it’s with when it comes to the ease of a double close.
But why mess with a good thing. If you have the property subject-2 already and you have a qualifed buyer that can cash you out for a quick profit, why not just go for that and be done with it? I don’t know how subject-2 affects title seasoning. And you may well run into a problem there. Make sure your mortgage broker understands that your buyer is buying a property that has title seasoning issues.
Let us know how it turns out. Sincerely, Kristine