buying a short sale property

Guest

I have a contract to buy a house, the seller and primary mortgage holder agreed to the terms of a short sale. Nearing closing the title company found an undisclosed second mortgage and that company is dragging its feet in releasing its lien on the property to allow the sale.

Do I have any option to force the sale, specific performance suit, or just have to wait things out for the second bank to give in to the sale?

Thank You

smithsussane · Posted: Sun Dec 14, 2008 7:29 pm Post subject:

Hi Florida Buyer!

Welcome to forums!

As far as I can understand your situation, you should note that the second mortgage holder has all the rights to place a lien on the property. They may even claim the money that is due. You may ask the seller of the property to sort out issues with the second mortgage holder and pay off the dues. I don't think you will be able to force a sale of the property.

Feel free to ask if you have further queries.

Sussane

gmakerley · Posted: Mon Dec 15, 2008 9:29 am Post subject:

"forcing a sale" is not a likely scenario. as sussane stated, the second mortgagee has a right to be paid (they hope). clearly, they can stop a short-sale if they so desire.

real estate agents taking a listing need to be cognizant of all liens on a property if they plan on seriously marketing it. perhaps a quick visit to the land records would have prevented a lot of heartache in a case such as this one.

Guest

Thanks for the info. I should have added that the second mortgage is out of the money with a first mortgage of 190K and a appraisal/selling price of 140K. The second mortgage is huge at 125K. Can anything be done by the seller to clear it?

jerry · Posted: Tue Dec 16, 2008 2:17 am Post subject:

Hi Florida Buyer,

As a buyer, you cannot force a sale of the property. The second mortgage lender has all the right to recover his debt. In order to clear it off, the seller has to pay off the debts. Also the second mortgage lender can even charge off the mortgage. But that will be totally the lender's discretion.

Thanks,

Jerry

Posted: Tue Dec 16, 2008 5:39 am Post subject:

It's a good thing the second mortgage was discovered before you closed, otherwise that second mortgage would now be your first mortgage!

Guest

Thank you all.

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