Short Sale On Two Liens
I am working on a potential short sale with two liens on the house, foreclosed on the first lien. The first is about $123, 000 and the second is about $31,000. The house value is around 135,000. My question is :
Do I need two purchase contracts with the owner for each lien holder?
If I use only one contract, the first lender (Fairbank) will see the total purchase price which incluses the discount price from the second lien holder. The bank may get confused and think the price on the contract is the price I am asking for.
Can anybody help me discount two liens on the house? Thanks in advance.
you only show the contract to the 1st lien holder. With the 2nd, you just negotiate the short sale without the sales contract because they know they will possibly be wiped out if it goes to auction AND you don't need to tell them about your dealings with the 1st.
Good Luck.
Thank you for your help.
The contract I show to the first lien holder will be the price I would like to pay just for the first mortgage, right? I should not include the discount price I agree to pay to the second lien holder, right? If the second lien holder accepts my offer, do you know what form I will need for the second lien holder to sign?
Thanks again for your prompt reply.