moytoy12
Guest
|
 Posted: Fri Oct 30, 2009 10:55 am Post subject: Short Sale - 2 properties, 1 mortgage |
|
|
Great forum, thanks for any input in advance. My brother is on the buyer side of a short sale. He originally thought he was offering to buy via a short sale 1 house on a 1 acre lot (the "1st Parcel") and submitted an offer for the 1st parcel. The seller approved of the offer.
He has learned that the 1st Parcel has a mortgage against it and that mortgage also covers an adjacent, but separate legal parcel (the "2nd Parcel"). My brother is being told that his offer is actually for everything covered under the mortgage, both the 1st Parcel and 2nd Parcel. This would be great, but I don't think the bank will ultimately go for it as the fair market value for the 1st Parcel plus the 2nd Parcel would far exceed my brother's offer.
The Seller has come back and asked my brother to quit claim the 2nd Parcel to the Seller for $1 after all the transactions are complete. My brother is unsure of this (both ethically and financially).
So, a couple of questions:
1. Does a short sale include everything covered by the mortgage even if there are multiple legal parcels backed by the same mortgage?
2. I told my brother to get the paperwork submitted to the bank asap and see if the bank will accept the offer (and my brother would get both parcels). The Seller has said they will pull their acceptance if my brother doesn't do the $1 quit claim at the end of the deal. Can the seller pull their acceptance at any time during the process?
It's a confusing deal, so please let me know what additional information I could supply. |
|
 gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 9749
Location: bloomfield, ct
35.02 Dollars($)
|
| Posted: Fri Oct 30, 2009 2:03 pm Post subject: |
|
|
first of all, if the mortgaged property is 2 parcels, then the lender already knows this. of course, that doesn't account for there being a fool in the lender's offices.
whatever the seller is proposing sounds blatantly illegal.
is there any legal representation here: buyer, seller, lender? this scenario seems so convoluted that you'd almost swear there was nobody looking at it who had any legal sense.
honestly, this all smells pretty bad, though i don't think your brother is a party to the stench. but if a seller is trying something underhanded, that's not too nice; and if a lender isn't even aware of the property its mortgage covers, that's pathetic.
_________________
George M. Akerley
Loan Consultant
860-221-5044 |
|
