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How To Solve The Most Common USA Short Sale Problem

Northeast OH – Short Sales where two or more mortgages are involved are the trickiest. Both mortgage companies are losing a lot of money.

They both think that they are entitled to the proceeds of the sale. This is the most common short sale problem. Today we’ll give you an example of how we solved this problem.

Click here to discover how other sellers successfully did a short sale and avoided foreclosure.

For example, we had a short sale with a first mortgage, a second mortgage, and a third lien. The third lien was an old credit card judgment. It had to be paid off to sell the house. Here is what happened.

The first mortgage was only willing to pay $3,000 to any second mortgages or liens. The second mortgage wanted $4,500. The credit card judgment wanted $5,000. How were we going to get the extra money for them?

I had to escalate the file with the first mortgage. I told them that they had two options.

Option one: Pay the first and second mortgage what they wanted and net X from the short sale.

Option two: Foreclose and net $15,000 less than X. Yes, my projections showed that they would lose an additional $15,000 if they rejected the short sale.

I have a calculator that puts all these numbers together. In addition, I have the proof to back it up.

Here is an example of that proof. There was recent short sale where the first mortgage stubbornly refused to give enough money to the second mortgage.

As a result, they foreclosed on the house and sold it for around $43,000 less than the short sale price.

I found out about this house because I met the first buyers at an Open House. They were trying to buy a short sale and were offering $272,000. The first mortgage was RBC, owed $337,500.

The 2nd was Bank of America, owed 70k. The agent submitted the short sale offer to both companies. RBC said they would only pay $1,000 to the second mortgage. The second mortgage wanted more.

The short sale dragged out for months. Finally the buyer paying $272,000 walked. The listing agent put the house back on the market. The housing market had declined. Now the only offers she could get were around $230,000. The house ended up selling for $229,000.

RBC was greedy and wouldn’t offer enough money to the second mortgage. As a result, they lost around $43,000. Was that a smart business decision? I don’t think so.

Now, back to my short sale story. I sent this and several other similar examples to the people at the first mortgage company. They agreed to pay the second mortgage $3,000 and completely pay off the credit card judgment.

Everyone came to an agreement and the sale closed. The seller was able to wipe out over $70,000 in upside down debt and move on with her life. Thinking about a short sale?

I can help you short sale your property and get back on your feet. Send me an e-mail at iandymorris@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (440) 348-5500

Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Northeast OH loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy.

Thanks for reading this, Andy Morris.

Andy is a Real Estate Broker at Realty Trust Services.

Phone: (440) 348-5500. iandymorris@gmail.com.

View My homes for sale at www.rtserve.com.

Andy Morris specializes in loan modification assistance and short sales in Northeast OH. Northeast OH Modification Help, Northeast OH Short Sales, Northeast OH Short Sale Realtor, Northeast OH Short Sales. Northeast OH Realtor, Northeast OH Stop Foreclosure, Northeast OH Foreclosure Prevention, Prevent Foreclosure Northeast OH, Northeast OH Foreclosure Defense, Northeast OH behind in Payments.

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