In some states it may be rare, but here in Florida the majority of my short sales seem to be with multiple mortgage companies. 

I see home owners with 1, 2, 3, and even 4 mortgages on a property. I see 80/20s, 85/15s, 90/10s, 95/5s, and all those varieties with Home Equity Lines of Credit on the house as well. 

How do you short sale with more than one mortgage? 

How do you short sale with a Home Equity Line of Credit (HELOC)?

The answer is simple:  The same way you short sale with just 1 mortgage.  All documents get submitted to all lenders involved.  The 2nd or 3rd lien holders are typically offered a "token" amount to release their lien against the property, which they almost always take, and we get the approval. 

Now it's not always that…

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