Are you considering a short sale? Did you know that if you only have one loan on your home, the short sale process can be simpler? Or, if you have two loans with the same bank, that’s doable as well. Until recently even if your home had two loans from different banks on it, your short sale had hope. Still, short sales are doable, but if you are concerned and have heard horror stories, I would encourage you to ask “How many loans? Which banks?”
It’s a long time coming but second mortgages fight back! Until recently second mortgages would settle their loan amounts for pennies on the dollar. First mortgages notoriously offer and stipulate that the maximum second mortgages can receive is $3,000. Since second mortgages are likely to receive nothing in a foreclosure situation, they would take it, and the deal would be done.
Recently, second lien position liens have started to fighting back in several different forms. First, on the forefront of negotiations, they are attempting to obtain as much as 10% of the entire second mortgage balance or they won’t release the lien from title. What’s even worse is this amount is only to “release” the lien,it in no way satisfies the loan. They then have previously sold, the note to a recovery company. This recovery company may be trying to collect from you as well. There are several ways how this can turn out. My first question is, aren’t they trying to collect twice for the same note? How can this be legal?
Considering a short sale? Call me for a free consultation (916)230-3880 or email me directly at JenKleinSac@gmail.com