Tip 46-2010: Short Sales – Don’t Forget the 2nd

<!–[if pub]> 281 7772400 10058400 259 261 257 276 262 279 1 0“““““““““““ 5 1 0 285 282 1 False 0 0 0 0 -1 304800 243 True 128 77 255 3175 3175 70 True True True True True 278 134217728 1 1 -9999996.000000 -9999996.000000 8 0 65312 0 5000268 0 280167156 65312 0 14869218 0 270336756 65312 0 14408667 0 270795508 65312 0 13421772 0 271778548 65312 0 2500134 0 282657524 65312 0 6710886 0 278463220 65312 0 16777215 0 268436212 65312 0 -1 (Custom) <![endif]–><!–[if pub]> 22860000 22860000 (`@““““` 266 263 5 110185200 110185200 <![endif]–>

Be sure to file short sale applications with all lenders (the first and all subordinate lenders).  Obviously, the short sale package goes to the first lender, but if there is a second lender (2nd Deed of Trust, Home Equity Loan or Line of Credit) they also need a complete package.
Even if the first lender may be paid in full, I would still recommend that a complete package be sent to both the first and second lender.  The second lender may demand more money, which could result in the first agreeing to a short fall.  Because each negotiation may be different, it’s better to be safe than sorry—all lenders should get the short sale package.
Also remember that a home equity loan or line of credit is still a lien on the property.  Sometimes the Seller does not understand that a home equity loan is still a mortgage.  A good practice tip is to ask the Seller at the listing to provide copies of all payoffs to show the status of each loan.  A second tip (previously in Tip 6-2010) is to order an early title search for the Seller to be sure that all outstanding liens (including judgments) are handled and negotiated with the short sale lender.

Please contact us if you have questions or need legal advice.

Senior Partner

William D. Tucker, III
Tucker Griffin Barnes P.C.
Charlottesville, Virginia
434-973-7474
Tucker@TGBLaw.com
www.TGBLaw.com

Facebook
Twitter
YouTube

Advertisements

About Charlotteville Personal Injury Attorney

Personal Injury attorney helping people injured in automobile, truck or mortorcycle accidents.
This entry was posted in Uncategorized and tagged . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s