Short Sale Problem
Posted by Tony Leocadio Admin on Friday, March 27th, 2009 at 3:33am.Everything seemed to be going well with the short sale - the first mortgagor had approved of the purchase price and negotiations with the second mortgagor seemed to be moving along. Yet, somewhere in the process, the second mortgagor sold off the debt for pennies (?) on the dollar. The new note holder had to be found and negotiated with, and they wanted more money than was previously being negotiated - a lot more.
Throw into the mix that the second mortgage was a HELOC (Home Equity Line Of Credit). The new owner of that note figures that if they don't get the money they require, they will hold the homeowner personally responsible for the debt.
The buyers of the short sale have been waiting patiently for months. Will the sale go through? Or, will the buyers have to try and purchase the home if it becomes a bank repo? Will there be more competition for the home since inventory has dwindled? How frustrating!
Trying to purchase a short sale can be a long, confusing process. And, better deals can be found by finding a motivated seller. Search for Orange County Homes.
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The short sale finally sold. The buyers had to bring more money into escrow. The agents had to reduce commissions.
Posted on Saturday, May 2nd, 2009 at 4:34am.