Helping Homeowners Avoid Foreclosure in Roseville and Sacramento

Have We Ever Had a Successful Three Lien Short Sale Completed with Bank of America?

Posted on Jan 6, 2013 in Roseville and Sacramento Short Sale FAQs

Hi, this is Mark Peek here with Keller Williams Real Estate, your Roseville and Sacramento short sale specialist. I wanted to talk today about a three lien short sale. So three different folks have to agree to the short sale. In this case it was Bank of America, a Citi down payment assistance program and a 3rd lien was from a housing fund from a local hospital based on the sellers employer. So in this case we have to have all three parties agree to the short sale and we also have a low dollar property. It can present a little bit of a challenge especially if you are looking to do a lien release from a Citi program. Every Citi program is different for their down payment assistance and if they do a lien release for a partial payment, if they want a full payment or if they are still requiring the borrower to meet certain guidelines. In this case the borrower had to actually meet income limitations so they couldn’t make over a certain amount of money.

So we are basically looking for a very small window of opportunity here. Only certain buyers are going to meet the criteria and in this case, the buyer did. So we have a payoff to Bank of America and in this case the city down payment assistance program will remain in effect. They won’t require a lien release or any kind of payment to it. The lien will stay in effect and will actually subordinate to the new loan and we were able to remove the third lien completely. So this was definitely a challenging short sale and every one of them poses their own certain issues and things that come up. This one was quite unique. I haven’t actually had a Citi program that still remained in effect. Usually we are able to pay them off and for a discount they will release the lien and we can just close it out. In this particular case they are holding their down payment assistance or their lower income housing liens. They are requiring a full payout or the buyer has to qualify under those criteria. If you have any specific questions about liens on your property for a short sale and you are wondering how this is all going to make sense and is it possible. I can tell you that I haven’t seen a situation that we haven’t been able to solve yet. Again, I’m Mark Peek with Keller Williams Real Estate, your Roseville and Sacramento short sale specialist. Give me a call today and we can talk about your situation. I’m sure we can find a way around it. Thanks and have a great day.

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