Only Short Sale Second Mortgage

A short sale is type of sale that takes place when the proceeds of a sale of a piece of real estate does not cover all the debt obligations on the property. At time there is enough funds to cover the senior mortgage in full, but not the subordinate liens. This is still a short sale. It throws many agents off because they have never been involved in such a transaction structured in this fashion.

Senior mortgages generally are the ones that offer “short sale programs” or relocation incentive at times. Subordinate mortgages may still allow for a relocation incentive if they choose and if their guidelines allow too but there is generally not a program in place. A subordinate lien will likely want to receive a payoff around what their equitable position is in relation to the property’s value. A transaction such as this is often quicker and at times smoother as you do not have to short the 1st mortgage; Since the 2nd mortgage is not in a favorable position, if they receive a fair settlement, they often will accept.

If you need short sale help or have questions, please fill out the form below or call 1-800-692-9960 and a specialist will be in touch with you shortly.