Mortgage … Line of Credit … Liens … Oh my!

The percentages are up!  The short sales that we are getting approved now don’t just have a primary mortgage to negotiate.  Its more common to see  junior liens (second mortgage or line of equity) on the home, and more and more there are Orders of Executions against the property as well.  Orders of Executions are when another creditor that you owe money to (service company, credit card company) attaches a lien to your property for the money you owe them.  In order to get through a closing on your property all these liens are going to need to be properly discharged.  A lien can be discharged through payment, expiration of the lien terms or through an agreement that includes a debt forgiveness option.

Additionally, if the home is a condominium, there’s  a homeowners association that will need to be paid in full to obtain the 6D Certificate required to close and transfer title.  The condominium association fees can be piling up quicker than you know if they’ve gotten an attorney involved to do a taking of the property.

So is it still possible to do a short sale and sell the property?

YES!  With the exception of Federal and State liens we can negotiate all the attachments to the property to help you get to the closing table.  It’s important when we meet with you to let us know everything you know.  The earlier we work on the Orders of Executions and liens on the property – the quicker we can close.  So your situation may not be as unique or challenging as you think – best way to find out if you can still sell is to give us a call first!