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I am a very savvy short sale expert her in Raleigh, NC. I have worked atleast 10 short sales this year with NO PROBLEMS up until now.
Scenario:
A seller currently has a 1st ad 2nd mortgage. The 1st lien holder has sent me (the agent) a SS approval letter that states the seller is NOT responsible for the difference. He will however receive a 1099. But the 2nd lienholder has also sent me an approval letter, but her letter states that her bank (BB&T) wants a promisary note for the difference around 25K. I know the seller doesnt have 25k to pay the loan back. He can barely afford keeping gas in his car (NOT OUR FAULT--I KNOW). I just wanted to paint a picture.
I have a buyer who is ready to purchase the home, but I dont think the seller will be able to sell under those above mentioned terms.
Can I work with the bank to have them forgive the promisary note amount?
Can the sellers get on the phone with the banks to get the amount erased?
A couple of the banks are doing this now. I have one with Regions where they are saying the same thing. I had one in the past that the first bank, after being told the 2nd wasn't budging, started to negotiate it out with the second. That deal went through...the 1st coughed up some to the second and the buyer came up with another $5K so the 2nd signed off on it.
Depends on the bank. Have you told the first what is going on? They may assist. And yes, the seller, if they can bare to do it, can call the bank themselves. Or their attorney may be able to assist.
An attorney is their best chance. An attorney will explain options like getting the deal closed and filing bk, or filing bk now and then close, or letting the 1st foreclose and the 2nd has to sue for a deficiency...
lots of options. Get your person to a local bk attorney.
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