Helping Successful Short Sales with 2nd Liens Avoid Foreclosure

Posted on May 3, 2012 in Roseville and Sacramento Short Sale FAQs

Hi, this is Mark Peek with Keller Williams Real Estate, your Roseville and Sacramento short sale specialists. Today’s topic is secondary liens on a property, specifically lines of credit. Now if you have multiple liens on a property and you are attempting a short sale, essentially those multiple liens have to agree with each other on who is going to get what in order to settle out the short sale.

I will tell you that those are more complicated than just a one lien short sale with just one loan on the property. In my opinion, multiple lien short sales typically have the highest failure rate. Typically the reason why it doesn’t get approved and closed is the second lien holders are not happy with the amount they are getting.

I got a $100,000 balance on a second lien on a short sale. They settled for as little as $3,000. They are going to release the lien, they’ve already approved the short sale, and when we close, the homeowner is not going to be liable for the difference. They are forgiving $97,000. It’s about how you set up the deal. It’s about expectations, having the proper package and follow-up and knowledge of the laws, the contacts at the lenders and knowing who the investor of that note is.

So if you have any questions on your specific short sale, or you have a second lien holder and you’re concerned you might not get it through, give me a call. You can also hit the start here button at the top of the webpage, enter your information and we’ll get back to you as soon as possible.

I also want you to consider taking a look at our short sale calculator. It will help you determine whether or not your home is a potential candidate for a short sale. It also might give you an idea how long it will be before your home might become an asset again. Again, this is Mark Peek at Keller Williams, your Roseville and Sacramento short sale experts and we’re here to help.

Read More