can an owner deal with the bank on a short sale if he has a buyer, with an offer in writing?

Question

if foreclosure happens and property has a 1st and a equity line of credit from same bank that was done at the purchase date is it true that the 1st gets paid and the equity line goes away

Answer 1

Nothing "goes away" unless the bank wants it to. They may agree to the short sale only if you agree to convert the shortage to a personal loan, or transfer it to a mortgage on other property you own. It is all up to the bank's loss mitigation people.

Answer 2

Unfortunately no! In order to do a "short sale" it must be done by a third party such as a RE agent/broker or an Investor/buyer. If you have a ready, willing and able buyer then I would suggest that you find a good RE agent/broker who knows how to do "short sales" and work with lenders. But remember it will be up to your lender if they want to do a "short sale or not. It will depend on your financial situation and their criteria. Don't just expect that they will accept a "short sale". But it is worth trying.
It sounds like you have very little equity or none at all in your property. If your property goes into foreclosure and it is sold, depending on who filed the default, the first position will always need to be paid first. Any junior loans (2nd, 3rd, etc..) will get nothing if there is nothing available after the first receives their payment.

We help homeowners such as yourself with "short sales" and other foreclosure options. I would suggest you not wait too long to resolve your financial problem.

I would be willing to review your situation and suggest some good options for you to consider regarding your foreclosure problem. If your interested then just contact me at your convenience. Good Luck!!

Answer 3

If the bank forgives any portion of what you owe you are likely to get a 1099 and have to pay taxes on it as income.

If you have an offer for less than you owe contact the Loss Mitigation dept. with your lender.

Answer 4

No, that's not true. If there are first and seconds, the first gets everything due to it, assuming that the proceeds are sufficient. The second would get anything left over, and if there was MORE than that, perhaps the seller himself would get a few bucks out of the deal.

Answer 5

Doing a workout depends on the bamk/lender, some are more willing to work with you. You might contact your lenders loss mitigation department and see what options they offer.