Posted on: 16th Dec, 2010 12:27 am
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Here's my question: "Is it possible to have owner financing on a short sale property?
Is there short sale closing costs?
Is there help with short sale down payment?
I know that the wait can be long and I plan offering $100,000 less than what they are asking. This is because I notice that the seller dropped the price on the house down $70,000 in less than 2 months... Why would they do that so soon?[color=Black:d52824cbb6][/color:d52824cbb6]
Here's my question: "Is it possible to have owner financing on a short sale property?
Is there short sale closing costs?
Is there help with short sale down payment?
I know that the wait can be long and I plan offering $100,000 less than what they are asking. This is because I notice that the seller dropped the price on the house down $70,000 in less than 2 months... Why would they do that so soon?[color=Black:d52824cbb6][/color:d52824cbb6]
Hi Guest,
You may not be able to owner finance a short sale property. After the short sale, the lender will try to recover as much dues as possible. If you owner finance the property, the lender will not be able to receive his dues at a particular point of time. Moreover, if you already have a mortgage on your property, the lender will not allow you to owner finance the property. Rather, if you do so, it will be considered as fraudulent by the lender.
Thanks,
Jerry
You may not be able to owner finance a short sale property. After the short sale, the lender will try to recover as much dues as possible. If you owner finance the property, the lender will not be able to receive his dues at a particular point of time. Moreover, if you already have a mortgage on your property, the lender will not allow you to owner finance the property. Rather, if you do so, it will be considered as fraudulent by the lender.
Thanks,
Jerry
Owner can finance his short sale if he has enough money to pay off the existing mortgage. He would have to have enough money to match the amount the short sale is short.
The owner can not start porcessing a short sale with his lender until he has a purchase offer and contract to process. He may have dropped the price to get the offer and contract so he can start processing his short sale.
If that is the case, he would not be owner financing. He would be profiting from the mortgage for his short sale. I do not think his lender would allow him to benefit from a short sale as well as benefit from holding the mortgage.
The owner can not start porcessing a short sale with his lender until he has a purchase offer and contract to process. He may have dropped the price to get the offer and contract so he can start processing his short sale.
If that is the case, he would not be owner financing. He would be profiting from the mortgage for his short sale. I do not think his lender would allow him to benefit from a short sale as well as benefit from holding the mortgage.
