short sale
Posted by Kathleen Vazquez on June 22, 2007 at 05:23:35:
I purchased a sheriff's deed for a second mortgage on a property and have been trying to conduct a short sale with the first mortgage company but keep hitting roadblocks. The original owners vacated the property 5 years ago after filing bankruptcy. They are extremely non-cooperative. They did give me written permission to discuss the situation with the lender, as well as written permission to purchase the property from the lender as they feel they have no rights or interest in it. But the lender wants to follow protocol concerning a short sale, financial statements, listing agreement, etc. and the owners will not comply. The property is in horrible dis-repair, severe mold infestation, old rotted underground oil tank, heater and well pump inoperable, broken windows, gutter falling off, structural damage to main beam, original 50-year old kitchen and bathrooms, etc.The lender's payoff amount is $220,000 (original loan amount $118,000) which includes 5 years of securing the property,taxes,legal fees,interest, etc. The market value of the home in it's current condition is @ $125,000. I have submitted a short sale offer for $131,000, with photos to substantiate $75,000 worth of repair costs to make the property salable. But the lender still require the standard information which I am unable to get from the owners. Also, the lender filed a notice of default and lis pendens on 3/15/2007 to foreclose. I purchased the sheriff deed on 3/1/2007, but was not listed in the lis pendens nor notified by the lender. Do i have legal recourse if they proceed without properly notifying me ? And how can I get the lender to loosen up the required paperwork from the owners so that we can continue to negotiate a short sale? I have the resources to repair the home for much less than $75,000, and would like to resell to recoup the $48,000. HELP!!!
Follow Ups:
- Re: short sale - Henry_CA 12:21:18 06/22/07
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