Short Sale After Property Tranfered To Buyer
I probally broke rule number one in obtaining a property, we used a quit claim deed. However in my defense I did have a title search done and the seller was honest about his mortgages. Seller filed bankruptcy and had both of his mortgages discharged, I kept up the payments on the first (92,000 balance) and I never heard from the lender on the second (12,000) I eventually found out that this bank went under and was in recievership to FDIC. I contacted them and they gave me all the info on who was holding the note on the 2nd. Can I still attempt a short sale request on the 2nd. I know the debt was discharged and they have made no attempt to forclose and or to collect the debt, which is now 3 years old since the discharge. Any ideas?
The debt was not forgiven or wiped out. When you say discharged what do you think this means?
If the first is current then the holder of the second is under no pressure.
If the note was sold off by the bank/lender then potentially an offer to buy the second back will be seen as a postiive deal for the present holder. It will cost them a bit to foreclosre.
You did not mention if there is much equity in the property. If there is not the 2nd holder will be slightly more motivated. If the property has a lot of equity they might just want to roll the dice.
At least track down the owner of the 2nd.
John
[addsig]
When I say discharged, I mean that the original borrower filed Bankruptcy, he listed the 1st and 2nd in his chapter 7 filing and his case has been discharged, he has no legal obligation to pay either mortgage (but I assume lenders can forclose). However I have taken over paying the first note, and the 2nd is just sitting out there.
I did do the research and I know who holds the note. The original lender of the 2nd was First national Bank of Keystone, the bank was closed by the FDIC and the note is now owned by Ocwen Federal. The last payment made on this note was about 6 - 7 years ago. This note is a 10 year payable loan and will muture in 2007.
Balance on the 1st is about $92,000 and we are not sure the balance of the 2nd but the original note was $15,000. The current value of the property is about $140,000, so there is some equity. I am current on the 1st , I realize there is no pressure on the 2nd. But I still thought because of thier position in the food chain they may consider a discount.
I have $12,500 invested and been paying the 1st about 5 years. Is it still worth the try to get this 2nd discounted ?