want to do a short sale but can't! - Posted by luke-NC

Posted by Bandman on July 08, 2003 at 21:01:51:

Something here doesn’t add up. How did the second mortgage foreclose without either assuming or paying off the first? Unless there’s something you’re not telling us, why even bother acquiring the position you’re looking at? From what you’re saying the only way the first can get resolved is by foreclosing and wiping out your about to be acquired interest. I don’t understand the point.

want to do a short sale but can’t! - Posted by luke-NC

Posted by luke-NC on July 08, 2003 at 19:48:26:

I’m going over many different options here on this one:

house had 2 mortgages, 2nd mortgage holder foreclosed and now they own the house. I call them up, now they are preparing to deed me their position subject to the 1st mortgage.

The home is deplorable shape, it needs probably 100k worth of work and is worth about $300k in marketable condition.

So, I contact the 1st mortgage holder, Wells Fargo. This home has been sitting in limbo for over 3 years! They say they started the foreclosure process 3 years ago, but never followed through with it. My guess is because the home is a total loss.

Being the owner of the property, I want to do a short sale since the original mortgage amount was $225k I figure the amount owed now is either the same or a bit more, due to late charges, interest, etc…

Problem is, I cannot get any loan information, no one will talk to me, because the loan is in the borrower’s name and I don’t have the authorization to discuss it. I cannot find the borrower, he is loooooooooong gone.

It seems so stupid, I own the home, but can’t even get the payoff…

What to do???

Re: want to do a short sale but can’t! - Posted by Todd B (Va)

Posted by Todd B (Va) on July 10, 2003 at 13:23:49:

Instead of doing a short sale, you should offer to buy the lien from them. Same thing as a short sale, but you are buying the lien instead of satisfying it.

Todd B (Va)

Re: want to do a short sale but can’t! - Posted by Scott

Posted by Scott on July 10, 2003 at 24:17:59:

Luke you may need to get the first assigned to you and then foreclose it yourself. Regardless you need a title search and a good real estate attorney to navigate this one. If the house is anywhere near Charlotte I would be interested in the deal or available for advice.

Re: want to do a short sale but can’t! - Posted by Bill H

Posted by Bill H on July 08, 2003 at 23:53:58:

Like bandman said—this does not add up.

Apparently your 2nd TD did not notify Wells Fargo of their foreclosure and the failed to pay the first to protect their position. Therefore Wells Fargo still has the original owner as being responsible for the loan.

Wells Fargo is correct. Giving you information about the property would be a violation of the Federal Privacy Act.

When you get the 2nd TD in your name, also get a copy of the original 2nd TD note and deed of trust, the original 2nd TD NOD and Trustee Sale and the original 2nd TD Trustee deed showing it coming back to them.

Make copies of all of this, send it to Wells Fargo and tell them that you are now the owner of the property.

I imagine that Wells Fargo will be exhuberant when they find out that it has changed hands. They can look forward to your bringing it current and keeping it up, etc.

I do not think a short sale is going to happen. As you put it…"They are preparing to deed…SUBJECT TO…the 1st. In this case…you are responsible for the 1st…I never heard of an owner getting a short sale for himself…but I guess anything is possible.

After Wells Fargo verifies that you own the property…I am sure the will give you the payoff…But LOOKOUT…they may call the entire loan, with all costs etc, now due and payable as a result of their DOSC.

Good luck–keep us posted on how you make out,