The Short Sale Myth
A second position lien will sign off on the short sale even if you offer them $0.00.
Sorry, there are no second position liens or any junior liens for that matter that will accept zero dollars.
Everybody wants at least something in order to take the time and close out their position, even if they have no chance in getting a penny if the home is taken to foreclosure by the first position lien.
Think about it, why would they go through the trouble of filing out the paperwork and spending their time and resources agreeing to the short sale if they will get $0.00 even if it goes to sale too?
If you aren’t offering them any money at all, it clearly makes more sense for them to let the property go to auction, at which poin tthey may or may not see any money, but they also don’t have to expend any effort.
In the end you need to satisfy all liens, and if they’re taking a loss, your agent needs to make sure the amount you offer to each lien is acceptable to them. You can’t force a second position lien that stands to lose $50,000 to take only $1,000. Sure, they might agree to it, but you can’t make them.
Be sure your agent is aware of and negotiates with EVERY junior lien, otherwise you will not be able to close the short sale.
Remember: one dollar is better than nothing. As you go through your liens, it’s important to offer something that is reasonable.
To connect with an agent that understands the delicate balance between lenders in different positions, contact us at OCForeclosureOptions.com and we’ll connect you with an agent in your area with the right amount of knowledge, the right amount of experience and the right tools to get your short sale closed the right way.
