what is the correct proceedure for a short sale with a mortgage company and what if there are two mortgages?
1st mortgage company is forclosing and i don’t know what the second mortgage company is going to do i asked the 1st mortgage company and they said the 2nd one was out of luck. uhm? i’m thinking i’m out of luck and will be responsable for what the 1st company comes down on mortgage and also for the second mortgage company will sue me for the unpaid amount i owe them so i need to know what to do and the proceedures and what to look forward to.
Tags: Company, correct, Mortgage, Mortgages, proceedure, sale, short, There
Haha, I like that response from the first mortgage company. You can tell the person in the loss mitigation department is fed up with his/her workload!
In regards to the procedure to do a short sale, there is too much info to post it here. Try reading this book with ISBN number being: 0471760846
What’s going to happen is that the first is going to do the foreclosure. The second will now need to decide if it will show up on the auction date to protect it’s investment. For example, let’s say your house is worth 100k and the first mortgage is 60k and the second is 20k. The second will need to decide whether or not they should show up at the auction and bid to pay off the 60k loan and turn around and sell your place to recover their money. If any of the mortgage companies do not recover their losses, they can go after you for the difference.
If I confused you, e-mail me and I will clear up any questions you have. If you’re in Southern California, contact me and I can help. I specialize in pre-foreclosures and short sales.
Regards
Im a Real Estate Agent in Orange County,CA. If you have any questions regarding Your House or would like to Sell,Buy,or Refianace Please feel free to give me a call.My toll free number is: (1866) 825-9618
California Home Realty.
Thank You
How many lates have you had on your mortgage?Don’t loose the money that you’ve put towards your house by going to foreclosure.You still might be able to sell.
The first company’s statement is not true, actually… When you take out a mortgage, you are putting your house up as collateral. If you have a first and second mortgage on your home, one is in “first lien” position and the other is in “second lien” position. Therefore, they are liens on the property and the interest of that property cannot be transfered without all liens being paid off. So, the second mortgage company is not “out of luck” and they cannot sue you. They have an interest in the property and will be satisfied no matter what. If they have to take a loss, that is the chance they gambled on when they took you as a borrower.
It’s kind of like a car, let’s say you had work done by a mechanic and never paid him. He can put a lien on your car, and you cannot transfer the title of that car until the lien has been satisfied. Make sense? Let me know if you have any further questions! You can also reach me at jeichbrecht@mbsmtg.com.
-Justin