Posted on: 13th Oct, 2009 10:25 pm
I'm doing a shortsale in California. Selling due to wife losing her job and because I work 80miles away from home. So with my wife's job loss we are downgrading and moving closer to my job. We owe $225k on the
first, and $10k on the second.
The second is a down payment grant I received back in 2004 when I purchased the home. I got a cash offer for $210k after 5 months on the market. Terms of the 2nd are that the loan is forgiven after 10 year but if the home is sold or refinanced before the 10 years the loan is due with 0% interest. The first agreed to the shortsale but the 2nd, the city, wants their money in full at the time of closing.
My question is has anyone had success dealing with one of these down payment grants during a shortsale? Should I get an attorney involved? I offered to signa promisary note and repay the 2nd but they will not budge.
Thank you in advance.
first, and $10k on the second.
The second is a down payment grant I received back in 2004 when I purchased the home. I got a cash offer for $210k after 5 months on the market. Terms of the 2nd are that the loan is forgiven after 10 year but if the home is sold or refinanced before the 10 years the loan is due with 0% interest. The first agreed to the shortsale but the 2nd, the city, wants their money in full at the time of closing.
My question is has anyone had success dealing with one of these down payment grants during a shortsale? Should I get an attorney involved? I offered to signa promisary note and repay the 2nd but they will not budge.
Thank you in advance.
as your second mortgage agreement states that you'll have to pay off the dues in full if the property is sold off before 10 years, you'll have to abide by it. that's the reason why the city is asking you to pay off the dues in full. you can contact an attorney and check out if he can negotiate with the city and reduce your payments towards the second loan.