I posted yesterday about getting House #38 (The Rot House) under contract…
That was actually supposed to be House #39, and House #38 was supposed to be The Rent-Back House, but if you were following along last week, you know that The Rent-Back House had some title issues from a second mortgage that wasn’t mentioned to the listing agent and wasn’t negotiated away as part of the original short sale.
Weeeeeeellllllll…
It looks like The Rot House has a second mortgage on it as well that may not have been negotiated!
I just found this out a couple hours ago from my closing attorney when they pulled title, and I immediately called the listing agent to see if he knew anything about it. On the bright side, he knew about the second mortgage…but he assumed that since it was owned/serviced by the same mortgage company as the first mortgage, it went away as well as part of the short sale. Unfortunately, the short sale approval letter doesn’t say anything about the second mortgage going away, so that may or may not be the case.
The listing agent says he’s going to call the bank tomorrow to see what the scoop is. Best case, it was considered part of the short sale approval and just wasn’t reflected on the approval letter. Worst case, we have to start all over and try to get this one approved from scratch.
I guess we’ll see what happens…
Thanks for sharing the experience!
Sounds like a tricky situation
Hey J, this sounds like fun 🙂 Between you & Kristine, I ought to be able to work my own short sales by now 🙂 not really, but it’s great learning. Thanks for sharing.