Re: Second mortgage in a short sale
Posted by steele in minnesota on October 25, 2006 at 03:45:48:
In Reply to: Re: Second mortgage in a short sale
Posted by Bill H on October 24, 2006 at 20:44:40:: : I made an offer on a house that has two mortgages. My offer is less than the total amount the sellers owe. It does not completely cover the first and it covers nothing of the second. The first mortgage holder is fine with the deal but the second is refusing to agree.
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If I understand your post...you are basically buying the house subject to the 2nd TD.
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Actually it sounds like the 2nd has not agreed to anything and a shortsale is not happening at this time.
Not unusual for the 2nd to want to get something. Wouldn't you in their place?
Yes, as mentioned the 2nd could foreclose subject to taking on the 1st (I'm being simplistic). As far as buying it ahead of time you are going to have to work a deal with the two mortgages one way or another.
Now just because the 2nd said "no" doesn't mean you give up. They are known to change their minds as they start to see the costs involved. But you are going to have to present a good argument why it is better to sell to you now rather than wait and hope they do better through foreclosure.
Keep trying.
Steele in Minnesota
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