First Short Sale - Need Help
Great House for Short Sale. Worth $85k, 1st = $68k, 2nd = $16k
Got Authorization To Release Signed for Both and Both Lenders said they would entertain a Short Sale
Package is together - Repair Estimate, Pictures, Comps, Hardship Letter, Contract ,etc.
Now I am stuck... The Contract was written for a $45k Sale Price but I have to deal with 2 lenders.
I want to offer $43 on the 1st and $2k on the 2nd.
Do I fax the Package to both lenders? or is their 2 separate packages? and how do I show this on the Net Sheet? 
I'm not so sure that I agree with your statement, this is a "Great House for Short Sale. Worth $85k, 1st = $68k, 2nd = $16k"
Their admission that they would consider a short sale was premature, a generality, and a non binding remark. You should know that you rarely get to speak with the decision makers... unless it's a small, community bank that services it's own loans.
If the confirmed FMV is actually $85,000, then the first will want 100% of what is due them. The second would probably settle for what was left.
You chore will be to demonstrate that the property isn't worth $85,000, that their net recovery (after foreclosure costs) will be considerably less. You offer must coincide with that approximate net recovery.
I would first concentrate my efforts on the junior lienholder. Get them to articulate in writing what they'll accept to release their security interest, and accept as payment in full.
Typos corrected, and an offer of good luck!
I'm not so sure that I agree with your statement, this is a "Great House for Short Sale. Worth $85k, 1st = $68k, 2nd = $16k"
Their admission that they would consider a short sale was premature, a generality, and a non binding remark. You should know that you rarely get to speak with the decision makers... unless it's a small, community bank that services it's own loans.
If the confirmed FMV is actually $85,000, then the first will want 100% of what is due them. The second would probably settle for what was left.
Your chore will be to demonstrate that the property isn't worth $85,000, that their net recovery (after foreclosure costs) will be considerably less. Your offer must coincide with or come close to that approximation of their net recovery.
I would first concentrate my efforts on the junior lienholder. Get them to articulate in writing what they'll accept to release their security interest, and accept as payment in full. Once you can indentify that amount, then go to work on the senior lienholder... but be conscious of the foreclosure timeline.
Good luck.
I would have to agree with TheShortSalePro, you would only have to negotiate with the 2nd. The 1st leinholder sees that there is equity in the home, so they would want the full 100% owed to them. Negotiating the 2nd would be easier because if it goes to auction, they stand to get nothing from the sale.
Tanya
p.s. TheShortSalePro - you can edit your post instead of posting it all over again with corrections.