Q: How does a second mortgage affect my chances of successfully doing a short sale? Julia in Bothell, WA
A: Let me first say that after closing more than 1400 short sales the only thing they have in common is that they are all different. The existence of a second mortgage generally makes the negotiation more difficult, however there are many factors that will affect your strategy:
- Are the first and second mortgages with the same lender or different lenders?
- Are you even shorting the first mortgage or only the second?
- If you are only shorting the second, how much will the second receive at closing?
When listing a short sale, it is critical that you first study the title report in detail to unearth any hidden issues. It’s incumbent on your short sale listing agent to ask the right questions up front and partner with the title company to create the right road map on how to proceed with the short sale.
If you’re considering a short sale, we’re happy to answer any questions you may have. Call Richard Eastern at (206) 612-5541.