Posted on: 28th Sep, 2006 07:01 pm
I placed an offer of $135,000 on a house for sale. The problem is that the seller has $155,000 in mortgages against the property (3 mortgages). I like the property but I will not pay the seller's debts. I believe the $135,000 price is a bit low but I will not go above $145,000 so there has to be a short sale. The seller has been maintaining the mortgage payments so far but is obviously in financial trouble - 2 judgments entered against the seller in the past year.
Any idea on how to approach the mortgagees to accept the short sale? I believe the seller is close to the end of the line financially and has already moved out of the house. The seller knows he will get nothing out of closing except being off the hook from 3 mortgage payments.
Any idea on how to approach the mortgagees to accept the short sale? I believe the seller is close to the end of the line financially and has already moved out of the house. The seller knows he will get nothing out of closing except being off the hook from 3 mortgage payments.
Hi Guest,
You need to talk to the seller first and then request him to negotiate with the lender for a short sale. You alone can have a talk with the lender. But it is better to involve the seller also.
Generally what happens in a short sale is that the lender forgives a part of the mortgage debt and allows the seller to accept a sale offer for less than what he owes.
Thanks,
Sara
You need to talk to the seller first and then request him to negotiate with the lender for a short sale. You alone can have a talk with the lender. But it is better to involve the seller also.
Generally what happens in a short sale is that the lender forgives a part of the mortgage debt and allows the seller to accept a sale offer for less than what he owes.
Thanks,
Sara
You can contact the seller's lender and send him a "Release" or "Authorization to Release Information" signed by the seller. This will allow the lender to talk to you regarding the seller's mortgage.