Wow! Who knew the bank would be able to take out an insurance policy on your second mortgage without you ever even knowing about it. Yes, I am dealing with this situation right now and it is going to prevent the short sale from successfully closing. We didn’t even find out about the policy until we almost had a short sale approval letter in hand and then we got the news. Not so good! The mortgage insurance company is demanding that the home owner/seller come in to closing with a substantial cash contribution or they will not approve the short sale. The owner/seller does not have the cash so the mortgage insurance company will not approve. Now the homeowner will have the foreclosure on their credit. In actuality, he took out the second mortgage, at a higher interest rate, to AVOID mortgage insurance and it ended up kicking him in the pants anyway!
Questions your REALTOR® will ask if you are thinking about a Short Sale:
1. What type of loan did you purchase your home with?
2. Do you have more than one mortgage?
3. Do you have mortgage insurance?
4. Is your loan conventional or FHA?
5. Have you refinanced?
6. How much do you owe on your loan(s)?
7. Who have you spoken to with regard to your options? Your attorney? Your CPA?
8. Do you have other debt?
9. Do you own other assets?
10. Are you current on your mortgage? HOA? Taxes?
11. Are there any other liens on your property other than your mortgage(s)?
12. Do you have cash to possibly contribute to closing?
13. Would you be willing to sign a promissory note?
14. Is your home a primary residence or investment property?
15. Have you tried to modify your loan?
These are just a few questions to have answers to before you call a professional to get your options. Please know that I am here for you any time you have questions or need help.
Your REALTOR® In Today’s Market!
(602) 510-5554 Cell
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Professional Real Estate Consultant
Keller Williams Integrity First Realty