2nd mortgage critical in short sale success
Bob Massi explains
- Duration 2:57
- Date Apr 19, 2012
Bob Massi explains
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If you're facing a foreclosure so many people are well there may be a way out now a new report shows that more people are selling homes who -- short sale.
So could that be an option for you.
Well let's ask Fox News legal analyst simulating guru Bob Massey could warns about the morning Gretchen -- let's get right to the questions -- we can help folks today.
How can assess your and mortgage holder stop a successful short sale.
In -- many houses in America the first more -- a second mortgage in order fur shorts ought to be approved.
Which is basically selling your house for will lessen what it's what you -- the second mortgage that's the that's the end the that's the lender that has to agree to a Gretchen and if they don't agree.
To the short -- then it forces the foreclosure.
And many many lenders second lenders are causing problems -- short -- even though short -- -- going up which is a good thing for homeowners in America.
All right question number two what role can -- seller or buyer play in resolving disputes with the second mortgage holder on a short sale.
Well it's it's always about money so here's what's happened let's assume that on a second mortgage -- -- 50000 dollars a year -- middle negotiations on -- short sell.
I've made an offer on the house.
Many times it happens Gretchen is the second mortgage.
-- a contribution.
From the homeowner they want some money out of the 50000 maybe they want a 5000 dollar contribution.
And many times the first words to get it done.
Will bill Wolff will basically -- like up to 3000 dollars to pay some kind of discount and amount.
And that's generally what what happened that's what's happening more and more in America on short sells the one thing and I know -- -- -- a little bit that I want to stress to our viewers.
Always remember on short sells please viewers.
Only do it if there's a waiver of deficiency meaning that.
The lender is gonna wave what the balance that's been -- is very very important because you don't get a waiver deficiency.
There really is no reason to do.
That's shorts so because you're still stuck with the balance that's so important OK question number three what are the consequences.
At a second mortgage holder refuses to negotiate and settle button.
Foreclosure I mean that's sort of the last resolved.
And because the foreclosure laws in America changed a little bit all the lawsuits foreclosures are becoming a little more complicated for letters of foreclosed.
Is why the short sales or the rising thing right now all the more reason -- played with our viewers a few weeks ago the -- relief back Gretchen.
That expires again this year please remember.
Contact your representatives to get that extended because -- tax consequences.
Could be crucial -- -- short -- or for closure if that deficiency is wave and you get a 1099 C.
You can end up paying actually income tax on that if it's not extended this year so call your representatives right very important Bob -- is always great to see you have a great weekend.