Nash & Lodge, PLLP www.nashandlodge.com 763.862.6100

SHORT SALE SCENARIOS

If You Need Help With a Short Sale If you are considering a short sale, this is the information that we need to negotiate the short sale to protect your interests.

SINGLE MORTGAGE 2006 Purchase $300,000.00    Price $280,000.00   1st Mtg  $20,000.00     Equity Purchase Agreement   -Should be contingent on lender and seller approving short sale   -Buyer may want a "drop dead" date for the short sale

MULTIPLE MORTGAGE 2006 Purchase $1,000,000.00   Price $   800,000.00   1st Mtg $   200,000.00   2nd Mtg                $0.00    Equity Purchase Agreement   -Should be contingent on lender and seller approving short sale   -Buyer may want a "drop dead" date for the short sale

Foreclosure Commenced Generally about 3 months to Sheriff Sale Sheriff Sale   Period of Redemption Generally 6 months for residential

Buyers Lender   Approval for mortgage

Lender Requirements Buyers must qualify Property must appraise Lender will require all prior liens  and encumbrances to be removed

Foreclosure Commenced Generally about 3 months to Sheriff Sale Sheriff Sale   Period of Redemption Generally 6 months for residential

Buyers Lender   Approval for mortgage

Lender Position Buyers must qualify Property must appraise Lender will require all prior liens and encumbrances to be removed

Short Sale Approval Process   In order to close on the purchase agreement where the purchase price is not enough to pay all that is owed on the property, the seller must obtain the approval of each lender who is not ...click here to finish reading. 2009 Sale   $210,000.00   Sale Price   $279,000.00  1st mtg   $69,000.00  Deficiency

Short Sale Issues   -Will lender approve sale price?   -Will lender forgive the entire debt?   -How long will approval process take? -If the deficiency was forgiven, what is the tax consequence?

Lender Position   Once the lender starts a foreclosure, they  have elected their remedy.  The most common type of foreclosure is....click here to finish.

Possible Result 1st lender approves short sale, agrees to forgive remaining debt.

Short Sale Approval Process   In order to close on the purchase agreement where the purchase price is not enough to pay all that is owed on the property, the seller must obtain the approval of  ...click here to finish reading. 2009 Sale  $500,000.00 Sale Price  $800,000.00  1st mtg     $200,000.00 2nd mtg -$500,000.00 Deficiency

Short Sale Issues   -Will lender approve sale price?   -How much will the 1st lender allow 2nd lender to be paid?   Click here to read about other issues

First Lender Position   1st mortgage lender has elected their remedy to forgive the deficiency if...click here to finish reading.   Subsequent Lender Position   2nd mortgage lender generally does not start a foreclosure and, therefore, has not elected their remedy just because ... Click here to finish reading.

Possible Results 1st lender approves short sale, agrees to forgive remaining debt 2nd lender is offered $1,000.00, agrees to short sale but will not agree to forgive the deficiency

Buyer Purchase Issues -Does Title Commitment provide owners coverage? -Do Buyers get a "marked" Title Comitment at closing? -Does Title Coverage provide for proper coverage? For more on Title Insurance, click here.

Buyer Purchase Issues -Does Title Commitment provide owners coverage? -Do Buyers get a "marked" Title Comitment at closing? -Does Title Coverage provide for proper coverage? For more on Title Insurance, click here.

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