Short Sale House
I’m buying a short sale house but it has got two mortgages, I have the short sale approval letter from the …?
1st lender but now seams like the 2nd lender is holding it off. there is any time frame to the 2nd lender to assign this short sale approval letter after the okay from the 1st one ? everything is ready and we’re supposed to close on October 23th what should I do?
Welcome to my world. Usually obtaining 1st lender approval is not that difficult. It’s the second that is usually the time consumer. The biggest thing you can do to see if you have a shot at closing is find out who the investor is on the first, and how much is owed on the second lien. Usually if the first lien is bank owned, getting second lien approval is not that hard, unless the 2nd has deficiency laws in that state where the property is located, if this is the case, then you have an issue. If Fannie Mae is the investor on the first, you have a decent shot as they are liberal on what they will allow to the 2nd lien holder. Freddie is by far the toughest and most stringent, their guidelines are pretty tough to navigate. The other obstacle is that the 2nd liens are at least 6 weeks behind in negotiations. Find out how much is owed to the second, and who the investor is on the first, if your agent is decent, you should be able to work the second now so that when they finally review everything, you’ll be prepared