Short Saling with a 1st and 2nd
I'm just looking for a little bit of clarity from the experienced... I'm a bit confused on how to handle a short sale that has 2 mortgages. I'll give na example: John Doe has a house that has a first mortgage of 200k and a second of 50k.
1. Who do I contact regarding the short sale? And if it's both, which one do I contact first?
2. I imagine the second is much more willing to play ball considering they have the most to lose, correct?
3. The short sale package gets delivered to whom?
This may be a stupid question....just need a little bit of clarity.
Most Popular Reply
You contact both at the same time. The first will generally take longer than the second.
The second will usually deal for 10% of the balanced owed. Some play hardball with you, it just depends on the situation. The more you can give them the better. Some first mortgage will only give a certain amount to the second ($3000). If this does not come close to 10% of the balanced owed, then the second will not negotiate with you.
The second mortgage will usually have a different contact than the banks department that deals with the first mortgage. Make sure you tell them they are the 2nd lien and you want that short sale department.