Short Sale Or Regular Sale

airahcaz

LoanSafe Member
Sep 18, 2010
302
2
18
NJ
First mortgage is $500K
Arrears $100K
Second mortgage is $200K and charged off years ago and haven't heard from GreenTree in years either.

Property value is approx $700K currently

Would this be considered a short sale if the first can be paid in full? If a SS, what does the second get? All of the remains?

Should one consider attempting to contact the second mortgage lean holder and settling? (although 20 or 25% is not cash that is on hand for a settlement). With the second gone, this would be a considered a regular sale, but it's a bit of a catch 22 cause the 2nd doesn't seem to want to settle for an amount that is feasible.

TIA
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,835
466
1,000
48
Southern California
www.loansafe.org
Hello,

It would not be considered a short sale. But you will have to get the second mortgage to agree to the sale by releasing the second lien that is still on your property. Yes, you will have to get them involved and to agree to some sort of settlement in order to release the lien so you can sell the home. If you do not, then you simply won't be able to sell.
 

airahcaz

LoanSafe Member
Sep 18, 2010
302
2
18
NJ
It's not a short sale even though the second mortgage puts the property under water?
 

airahcaz

LoanSafe Member
Sep 18, 2010
302
2
18
NJ
Hello,

It would not be considered a short sale. But you will have to get the second mortgage to agree to the sale by releasing the second lien that is still on your property. Yes, you will have to get them involved and to agree to some sort of settlement in order to release the lien so you can sell the home. If you do not, then you simply won't be able to sell.
And if I can't sell, then it goes to FC and the second gets what they can from there?
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
2,099
181
63
San Diego, California
www.loansreduced.com
What Moe is saying is that the 2nd mortgage has to agree to a short sale as well as the 1st. Since the 2nd mortgage has vested interest in the property and a lien they have to agree as well as the 1st, if they don't it will end up in foreclosure and then the 2nd lien holder will get paid whatever is leftover.
 
  • Like
Reactions: Moe Bedard