Posted on: 31st May, 2011 09:16 am
I am currently going through a Short Sale and my realtor advised me that the 2nd Lender may ask for a small token, which can be a few thousand to approve the deal. I don't want to have to pay any $ for this short sale since I am already in the hole and my credit is screwed. My question is...shoudn't the 1st Lender or the Buyer be the ones to cover this added cost and satisfy the 2nd lender? If anyone is in position to pony up some cash it would be them. After all a short sale seller should be in dire straits for the most part.
Thanks for your time.
Thanks for your time.
The first mortgage lender would have no responsibility whatsoever to pay the secondary lender. Nor would the buyer of the home bear any responsibility. The only responsible party is the borrower of that particular loan, and that, unfortunately, is you in this case.
I fully understand your predicament, that you lack equity with which to pay them and with your credit having been ravaged as well, you're not able to borrow funds to satisfy them.
Perhaps they're willing to work out some sort of arrangement for the future (just as likely not, of course). The worst case scenario, of course, is that they'll neglect to approve the short sale and you're back in the old situation.
What the second lender needs to recognize, of course, is that they'll get no compensation whatsoever should the property go into a foreclosure action. Sitting in second position is a bad place to be in 2011, but the only person liable for paying the debt is the original borrower.
Try to negotiate something.
I fully understand your predicament, that you lack equity with which to pay them and with your credit having been ravaged as well, you're not able to borrow funds to satisfy them.
Perhaps they're willing to work out some sort of arrangement for the future (just as likely not, of course). The worst case scenario, of course, is that they'll neglect to approve the short sale and you're back in the old situation.
What the second lender needs to recognize, of course, is that they'll get no compensation whatsoever should the property go into a foreclosure action. Sitting in second position is a bad place to be in 2011, but the only person liable for paying the debt is the original borrower.
Try to negotiate something.
If you went through the HAFA short sale agreement, your 2nd lender would get a small portion of the sale proceeds. Did you complete the HAFA short sale approval request? Contact your lender to see if the proper HAFA requests were made. Home Affordable Foreclosure Alternatives, part of HAMP by the Fed. Gov.
No, this is not a HAFA short sale. It's a regular short sale.
Thanks for the response
Thanks for the response