Anybody Ever Shorted A Current Mortgage?
just wondering if it was a possibility. especially if its just a matter of time before the owner is in default. say if you can prove that the home owner has lost his job and the rate is too high for him to be able to pay and he just refinanced out all the equity. think its possible? or is it a technicale matter that they just wont do it because there is the slightest chance they might come up with the cash, even though you know they wont and they tell you they wont. thanks
"realtor believes the bank will accept a bid of 80% of the current mortgage to get the house off of its books"
I am sure that the realtor has no basis on which to base his belief. I am not trying to discourage you, but just pointing out that each investor (bank, lender, etc), each representative of each investor is different, each property is different, etc. So that there is no way your realtor has a basis for his belief. I have done quite a few short sells and I am constantly surprised by the outcomes and would never bet money on the outcome.
Something similar happened to me right before I sold a house that I bought as a pre-foreclosure. A letter arrived claiming that the previous owner had failed to declare siblings as heirs when he went to the court to have the property put in his name. The letter hinted that an "heir" intended to reverse what the court had done in awarding ownership to the previous owner. Nothing happened in the wake of the letter.
There is no harm in calling the lawyer back to find out why you were called. Most likely, their is an "heir" lurking in the background. My sense is that it would be an uphill battle for someone to undo your purchase. Keep us informed if you call the lawyer.
Update:
The attorney called and said she represented something or someone dealing with bankruptcy. She said the property was listed by the previous owner as property owned. She said her firm sent someone to the property to put a for sale sign on it and realized I had bought the house. She asked when I bought it and how much I paid. I told her I bought it from a bank and that she could call me closing attorney. I have title insurance and the deed has been filed in my name. The attorney said she would call my closing attorney.
I did call the seller and she said she thought about foreclosure and did talk to an attorney. That is all she said. Anyway............I guess I will just set back and wait...
Becky,
We have a Short Sale Forum on TCI. In addition, there are a number of people with short sale experience that are TCI members. You might read some of the posts in the forum.
Regards,
Ed