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Hello,

I have a short sale offer pending. My 2nd mortgage holder is a home equity line of credit. They have refused to agree to a short sale unless I make deficiency payments and have stated that they would rather foreclose. We are offering them 5,000 of 30,000 owed. Is it possible they would rather foreclose??

If the primary lender agrees to the short sale, and I have no more assets, can I go through with the short sale? What could the 2nd mortgage holder come after me for if I refuse deficiency payments?

Thanks for any help. I am very lost and not sure why a bank would rather foreclose.

adonis · Posted: Sun Apr 25, 2010 9:06 pm Post subject:

Welcome ofe,

It would be the lender's discretion whether or not he would accept 5000 of the 30,000 owed. The second lender has the rights to foreclose the property. However, if he does so, then he would be liable to pay off the dues of the first mortgage lender. In most cases, if the second lender does not receive their fees, then they would simply charge off the mortgage. A collection agency will then contact you and collect the dues from you. To know more about second mortgage charge off, check out the given page:
http://www.mortgagefit.com/know-how/secondloanchargeoff.html

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Short Sale with primary lender and home equity

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