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How do you handle 2nd mortgages on short sales?
Is there a web page that explains, or does anyone know how I handle the second mortgage on a short sale? I've done a few short sales, but only with a 1st mortgage. I've tried a few with a second mortgage and I was told by the first mortgage, that the max they would allow the 2nd to get was $1,500. Another time, I was told by the 2nd that they wanted ALL of their money. They (HSBC) said that if they are going to lose out in getting paid, then why help the owner and out let the owner get away scott-free.
2 Answers
- 1 decade agoFavorite Answer
With most short-sales and foreclosures happening in areas where the market is already depressed more the 20%, most 2nds are already expecting to lose their entire investment, especially in hard hit and overpriced areas such as CA. Figure with a 100% financed property....80% 1st and 20% 2nd, the 2nd holder has no equity to claim. The escrow company is obligated to pay the 1st loan position before the 2nd.
- goz1111Lv 71 decade ago
Many factors in the second note, first an most importantly is it non-recourse or recourse, if non more willing to work a short since they have non-recourse
