Short Sale to Default Owners???
Dont think me luny...just charge it to ignorance BUT...Has anyone ever seen a mortgagee do a short sale with the present owners in a pre-foreclosure? Assuming the owners can meet all the criteria and can "Prove" the property is not worth what they owe. How about taking the short on a sale then negoitiating the difference to be paid in smaller installements??? I dont know..but I'd like to hear from those that do know or have seen it done or anyone with ideas on this... Thanks :) [ Edited by TSeaWell on Date 06/05/2003 ]
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Lender will not short sale a property to the defaulted homeowners. The fact that the owners owe the lender money, they will not accept a short sale proposal from the homeowners because they do not want to see the owner's getting any money. A family friend or investor can short sale the property, but a requirement of the lender will be that no proceeds from the short sale can be given to the owners. When submitting the short sale package, you usually submit a settlement statement that shows how much is due back to seller, which should say $0. All lenders will have the criteria about the seller not getting any money in order for them to accept the short sale.
Tanya
Thanks tanya...But...How, in that case is the seller getting any money?...