Question: I may need to short sale my home in Washington DC. My second is a line of credit of $80K. Is it possible that that lender approve a short sale, or will they automatically not, just because it is a line of credit and not a regular mortgage loan?
Answer:
Yes, you can “work out” something with your lender. A short sale is usually done when you have a buyer come in and offer the bank less than what that home is worth and then you have to move out. If you want to sell the home, than that would be an option. However, a better alternative might be to Settle Your 2nd Mortgage. This is where you would negotiate a full payoff or settlement of your 2nd mortgage. It’s a lot different from a short sale because you get to stay in your home and it doesn’t affect your credit like a short sale would. Hope this helps.
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Owe 275K on 1st Mortgage… Owe 70K on 2nd Mortgage…
Have an offer on table for $281K. This will obviously be a short sale.
BPO was done by the 2nd and now they say they need offer to be $30K MORE!!
There is NO WAY the house will even appraise for that…much less me finding a NEW buyer to pay that much money for my house.
I told them Friday, ok, it will foreclose because you are now blocking this sale.. the only offer we have had in a year the home has been on the market. It was listed for $320 with
not even one looker.
So now what?
Stick to your guns. I would send them articles or show comps of how slow the market is. Ask them if they would rather have $5000 or nothing at all which is going to happen if it goes to foreclosure. One other option might be to see if the 1st will discount some. (maybe $30K if you are lucky) It’s always worth a shot.