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question

Posted on: 11th Sep, 2008 06:27 pm
Hi. I have a question. House in Florida is set to close as a short sale but the 2nd lien holder won't accept as pay-off and reserves the right to collect balance. Is a payment agreement signed with seller to make payments to 2nd lien holder? What happens if signed but never paid?
Thanks!
I would ask an attorney?
Posted on: 11th Sep, 2008 09:43 pm
Hi gonzalezfc,

Welcome to forums.

I think you have a first mortgage on your home. After the short sale is complete, the first mortgage lender may ask for the payment of deficiency as Florida is a deficiency judgment state.

"the 2nd lien holder won't accept as pay-off and reserves the right to collect balance"
Do you mean to say that the second lender does not want to be paid off through short sale and he is insisting you to repay by way of a payment plan?

Thanks
Posted on: 11th Sep, 2008 11:32 pm
If you're buying the house don't worry it's the seller's problem. Title will have to be cleared before a mortgage company would lend you the money.

Always contact a real-estate attorney.
Posted on: 12th Sep, 2008 05:52 pm
i don't think a title company will transfer title without the second mortgage being satisfied. actually, i know they wont. if it does come down to closing, i would make sure you get an owners policy on the title insurance to protect against future liens.
Posted on: 16th Sep, 2008 01:26 am
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