St Petersburg Short Sales | I have a mortgage and an equity line, can I still qualify for a short sale?
In a St Petersburg Short Sale, yes, you can have more than one mortgage in order to qualify for a Short Sale. It is a bit difficult, but possible.
Here is the reason why it might be a bit more difficult, since both mortgages have to approve the sale. Let’s just say you do have 2 mortgages with 2 different Banks. The first mortgage offers $5,000 to the 2nd mortgage. However, the 2nd mortgage wants $15,000. There are ways around that a few different ways.
- You could go back to the 2nd mortgage and re-negotiate
- You could ask the Buyer, if he would be willing to make a contribution towards the 2nd mortgage
- You as the Seller, if you have the funds available, make a contribution towards the 2nd mortgage
Each and every Short Sale negotiation is different. In some cases, the 2nd mortgage simply agrees to the amount given to them by the 1st mortgage.
Another important factor is timing. We are currently working on a St Petersburg Short Sale, where the 1st mortgage has approved the Sale and wants us to close in 25 days. However, we can’t since the 2nd mortgage has not approved the sale yet. Most likely, by the time the 2nd mortgage gets around to it, we’ll have to get an extension from the first mortgage. In these cases, it is a very fine line, since once you have an approval, nothing is worst than not being able to get the deal done while everybody is on board.
That is one of the reasons, why we always prepare our Short Sale Buyers, to have their loan application ready to go, so as soon as you’ll the receive the approval on your St Petersburg Short Sale you made an offer on, you as the Buyer need to be ready to go. If your lender told you, they will need at least 45 days in order to issue your new mortgage to purchase this St Petersburg Short Sale, you need to let your Short Sale Realtor know right away. Most Short Sale Banks once an approval has been issued, will only grant 30 days until closing.
As we said, each and every St Petersburg Short Sale is different. Call us at 727-399-9990, we’ll be glad to assist. St Petersburg Short Sales | I have a mortgage and an equity line, can I still qualify for a short sale?